Sales and Discounts a Priority for This Year’s Holiday Shoppers
by Christina Lee on October 31st, 2008
As expected from bargain shoppers over the years, more than 40 percent of consumers have already started their holiday shopping, according to the National Retail Federation.
But over the past four holiday seasons, consumers as a whole have grown more cautious and calculative. This year, they plan to spend an average of $832.36 on holiday-related shopping – a mere 1.9 percent increase from last year, and the lowest increase anticipated since 2002.
Wholesalers in addition to discounters should do relatively well this season, said Michael Niemira, International Council of Shopping Centers chief economist and director of research.
“Not surprisingly, big-ticket purchases are likely to take a backseat to more traditional, basic and value-oriented goods and services,” he said in a statement.
Four years ago, holiday consumers dodged discount stores and items in favor of luxury goods and brands. Now about 70 percent of consumers plan to shop at discount stores, while 40 percent of them will consider sales and discounts as the most important factor in choosing where to shop. Only 13.4 percent ranked merchandise quality as most important today, according to a National Retail Federation survey.
With odds against them in the housing and job markets, holiday consumers even plan this year to decrease spending on gifts for family members. And with such priorities in mind, Kohl’s launched Wednesday a holiday campaign implementing aggressive savings and a resonating tagline: “Gifts That Fit Your Budget Beautifully.”
“Our entire holiday program is designed to help customers stretch their budget during an especially difficult holiday season,” said Kevin Mansell, Kohl’s president and CEO, in a press release.
But even with early promises of savings, researchers predict that this holiday season will bring the weakest growth since 2002. The National Retail Federation predicts that sales will rise by 2.2 percent; the International Council of Shopping Centers, 1.7 percent. Sales have risen an average of 4.4 percent over the past ten years.