Consumers aren't pulling in the reins
on Holiday spending

©2005 Radio Business Report/Television Business Report, Inc.

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 survey. The NRF 2005 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, found that the average consumer plans to spend 738.11 this holiday season, up 5.1% 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% 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 NRF CEO. "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.

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% of consumers hoping to receive something in that category. Apparel is also another gift favorite, with 54.4% 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% saying it was the most important factor when choosing where to shop.

Many consumers have already gotten head start on their holiday shopping. According to the survey, 15.3% of consumers started their holiday shopping before September with an additional 6.3% starting last month. Retailers are seeing more holiday shoppers in their stores, with 18.5% of consumers saying they planned to begin in October. More than one-third of consumers (37.4%) will begin their holiday shopping in November and nearly one in four (22.5%) will wait until December.