The majority of consumers intend to spend the same (67%) this holiday season than last year, and 10% plan to spend more while fewer that say they plan to spend less, according to the NPD Group’s 11th Annual Holiday Survey.
“Looking at this year’s responses, I see a light at the end of the tunnel with more consumers telling us they plan to ‘spend about the same’ and less planning to ‘spend less’,” said Marshal Cohen, chief industry analyst, The NPD Group, Inc. “While consumer confidence seems to be up retailers will still face some challenges. They will need to develop creative ways to lure shoppers into the stores.”
Owing to the upcoming election, overall the holiday shopping season will be off to a late start, the report said. While more consumers last year started already by this time, this year there will be an increase in the number of consumers who will begin their shopping before Thanksgiving.
“Consumers and the media will be thinking about the election more than shopping, but when the election is over consumers will get into the holiday spirit,” Cohen said,
There is an increase of 1% to 2% in the number of consumers planning to shop at Off-Price Retailers, Drug Stores, and Specialty Stores this year versus last. Off-Price Retailers and Specialty Stores also did better than Catalogs/Mail Order on the list.
“Retailers at all levels are likely to be challenged this year with the channel lines increasingly becoming blurred. Among the competition for traditional retailers this year are Drug Stores and Supermarkets,” said Cohen. “Now that consumers are less attracted to sale prices and more attracted to selection as well as convenience, stocking the right items will be essential to drive foot traffic.”