NRF Sees Holiday Spending Slower Than Usual

Washington, DC, Oct. 16, 2008--U.S. consumers plan to spend an average of $832.36 on holiday-related shopping, up 1.9 percent over last year’s $816.69. This represents the lowest increase in planned consumer spending since the survey began in 2002, according to the National Retail Federation’s 2008 Holiday Consumer Intentions and Actions Survey, .

Though shoppers choose to visit stores for different reasons, consumers say one factor will play the biggest role in buying decisions this year: price.

According to the survey, 40 percent of shoppers say that sales or promotions is the largest factor when determining where to shop, while another 12.6 percent state that everyday low prices are most important.

Other consumers rated selection (21.5 percent) and merchandise quality (13.4 percent) as the primary factor. Only a handful of consumers said they are making buying decisions based on a convenient location (5.6 percent) or helpful customer service (5.2 percent) this year.

“Retailers are going into this holiday season with their eyes wide open, knowing that savings and promotions will be the main incentive for shoppers,” said NRF President and CEO Tracy Mullin.

“No one is canceling Christmas because money is tight, but consumers will be sticking to their budgets and looking for good deals when deciding where to spend this holiday season.”

As in previous years, gift giving is the largest component of shoppers’ budgets. This year, the average person will spend $466.13 on gifts for family, $94.52 on friends, $26.70 on co-workers, and $43.50 on other gifts.

Consumers’ holiday budgets this year also include spending on decorations ($51.43), greeting cards and postage ($32.43), candy and food ($95.04) and flowers ($22.61). While retailers spend the month of October rolling out holiday merchandise and promotions, consumers are standing by at the ready.

According to the survey, 40.2 percent of consumers will start their holiday shopping before Halloween. This figure is consistent with numbers from previous years and demonstrates that bargain hunters are looking for ways to spread out spending over a period of time.

With sales and promotions the theme of the 2008 holiday season, it’s no surprise that most consumers (69.7 percent) plan to do some shopping at discount stores. Additionally, more than half of American adults plan to shop at department stores (58 percent), while more than one-third of shoppers plan to shop at clothing (37.3 percent) and electronics (37.3 percent) stores.

As the Internet becomes more of a mainstay in the retail landscape, Americans are heading online to compare prices, research retail locations, and look for gift ideas before heading to stores.

Though most consumers plan to stick to a budget this holiday season, many are padding it with a little something extra. Knowing that the holidays often abound with good deals, more than half (56.6 percent) of shoppers are planning to make additional non-gift purchases for themselves or their families this holiday.