Inspired brains never sleep
Dec.
02
Economic conditions in the U.S. may be stabilizing, but the grim reality is that jobless claims are still high, unemployment is in the double digits, foreclosures for August 2009 were 18% higher than a year ago, and credit markets are still tight. This, of course, translates to weak holiday sales. Nielsen reports that 42% of U.S. consumers plan to spend less on holiday gifts in 2009 up from 35% last year.
Deals, deals and more deals
Consumers plan to use a wide array of tactics to save money this year—deal seeking is the predominant course of action:
- 53% of consumers will wait for sales
- 46% will buy lower priced gifts
- 42% will bargain hunt more extensively this year
- 39% plan to use coupons
- 37% plan to shop at less expensive retailers and more online
- 23% will give homemade gifts
- 22% will make fewer shopping trips
Online decline
For the first time since 1999, when the U.S. Commerce Department started tracking online sales, 2008 and 2009 reported quarter-to-quarter and year-to-year retail e-commerce sales decline. Additionally, a Nielsen survey reports that the online shopping population may shrink this year. In 2008, 71% people of people planned to do holiday shopping online. This year, that number drops to 63%.
Those determined to shop online expect to spend significantly less this holiday season. In 2008, 42% of shoppers planned to spend more than $300 on their online holiday purchases, but this year only 31% intend to spend that amount. Not only are consumers spending less money online, but they are planning to spend a smaller amount of their total holiday budget online compared to brick and mortar stores.
