NRF: Consumers Aren’t Pulling in the Reins on Holi
Washington, DC, October 18, 2005--Consumers will be feeling the spirit of the season when they hit the stores for their holiday shopping, according to the findings of the latest National Retail Federation (NRF) survey.
The NRF 2005 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch for NRF, found that the average consumer plans to spend $738.11 this holiday season, up 5.1 percent from the previous year. Furthermore, consumers will spend an additional $86.62 on themselves. The survey is in line with NRF’s holiday sales forecast, announced last month, which expects total holiday retail sales to increase 5.0 percent over last year to $435.3 billion.
“Just as retailers plan ahead for holiday sales and promotions, consumers plan ahead and budget for the holidays,” said Tracy Mullin, President and CEO of NRF. “With extra money tucked away to spend on what’s important, shoppers will be hitting the stores and spending on their loved ones, and on themselves.”
Shoppers will be scooping up a variety of merchandise this holiday season. According to the survey, consumers will be dedicating the majority of their holiday spending to gifts for family ($421.30) and friends ($78.99). Their generosity will also spread to the other people in their lives, with consumers planning to spend $21.05 on co-workers and $44.16 on gifts for other people, including babysitters, teachers and clergy. Other items holiday shoppers will purchase this year include decorations ($40.86), greeting cards and postage ($28.22), candy and food ($87.75), and flowers ($15.78).
Consumers aren’t forgetting to pick up a few items for themselves while shopping. According to survey results, consumers will spend an additional $17.68 billion on non-gift purchases for themselves or their families this holiday season. Men will be the most generous when it comes to treating themselves, with the average male spending $108.87.
“While it is always fun to buy a present for that special someone in your life, it is hard to resist adding a little something extra for yourself,” said Tracy Mullin, President and CEO of NRF. “Many consumers use two-for-one sales as a great excuse to get a gift for someone on their list and to treat themselves.”
Consumers have not forgotten to add a few of their favorite items to their wish lists. Books, CDs, DVDs, videos, and video games once again remain popular items, with 55.5 percent of consumers hoping to receive something in that category. Apparel is also another gift favorite, with 54.4 percent hoping to receive clothing or accessories this year. Other popular items on their lists include gift cards (52.3%), consumer electronics (38.4%), jewelry (26.4%), and home décor (23.3%).
When it comes to choosing where to purchase holiday items, shoppers are looking for a deal. More than one-third of consumers (37.9%) said that sales or price discounts are the most important factor in their decision to purchase from a particular store. Selection is also important, with nearly a quarter (23.1 %) of consumers polled ranking selection of merchandise as a top factor, while other consumers chose where to shop based on quality of merchandise (11.0%) or location (6.5%). Consumers also appreciate good, knowledgeable customer service, with 3.7 percent saying it was the most important factor when choosing where to shop.
“It is no secret that consumers love to get a good deal,” said Phil Rist, Vice President of Strategy for BIGresearch. “While sales and promotions will lure shoppers into stores, consumers are also willing to spend a little extra on quality merchandise.”
Many consumers have already gotten a head start on their holiday shopping. According to the survey, 15.3 percent of consumers started their holiday shopping before September with an additional 6.3 percent starting last month.
