Shoppers’ Reliance on Credit Cards Drops Ahead for
Washington, DC, November 16, 2005--More consumers will be leaving their credit cards at home as they hit the stores for holiday shopping, according to the NRF 2005 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch.
While debit/check cards (34.3%) will remain the favored form of payment this holiday season, fewer people will be relying on credit cards when purchasing holiday merchandise (28.2% vs. 29.5% in 2004). In fact, cash has replaced credit cards as the second most-popular payment method, as one in four shoppers (28.5%) plans to primarily use cash during the winter holidays, up from 25.9 percent last year. A small percentage (9.1%) of shoppers will be writing checks at the register.
“Debt-conscious consumers will prefer to pay out-of-pocket for gifts this year and are making a conscious decision to reduce their reliance on credit cards,” said NRF President and CEO Tracy Mullin. “Just as retailers plan throughout the year for the holiday season, consumers are padding their budgets to prepare for additional spending during the holidays.”
Shoppers will be scooping up a variety of merchandise as they hit the stores this holiday season. According to the survey, books, CDs, DVDs, videos and video games remain gift favorites, with 62.1 percent of those polled planning to purchase at least one as a gift. Consumers are also planning on purchasing clothing and clothing accessories (60.3%), gift cards (52.5%), and toys (45.0%) this holiday season. In addition, 30.1 percent will include food or candy in their holiday gift purchases.
Despite their best intentions to get a head start on this year’s holiday shopping, most consumers still have a number of gifts left on their lists. According to the survey, as of last week the average person had completed about a fourth (24.9%) of their shopping, with the majority of consumers having completed less than ten percent (68.1%). Some shoppers have planned ahead to beat the crowds, with one in 20 consumers almost completely finished (more than 75% complete) with their holiday shopping.
“Many people use Thanksgiving as a springboard to begin their holiday shopping,” said Phil Rist, Vice President of Strategy at BIGresearch. “With so many shoppers hitting the stores the weekend after Thanksgiving, retailers will be opening their doors to consumers with great deals and savings.”
NRF continues to project that holiday sales will increase 5.0 percent this year to $435.3 billion.
