Press Release
Consumers in a Frugal Holiday Mood, The Conference Board Reports
Consumer Internet Barometer™ Tracks Who's Doing What on the
Internet
November 23, 2009
U.S. households are expected to spend an average of $390 on Christmas gifts this holiday season, down from last year's estimate of $418, The Conference Board reports today.
The survey of Christmas gift spending intentions covers a nationally representative sample of 5,000 U.S. households. It was conducted for The Conference Board in November by TNS, the world’s largest custom research company.
Download a PDF of the press release with graph and summary table.
"Consumers are approaching the holiday season very cautiously," says Lynn Franco, Director of The Conference Board Consumer Research Center. "Job losses and uncertainty about the future are making for a very frugal shopper. Retailers will need to be quite creative to entice consumers to spend, both in stores and online this holiday season, as consumers most certainly will expect major markdowns and bargains."
(See page 3 for complete survey data.)
The top spenders will be New England households (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont) who intend to spend an average of $534. Lowest Christmas spending will be in the Mountain region (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, Wyoming) where consumers intend to spend $332 on Christmas gifts.
Only 26 percent of all households intend to spend $500 or more on Christmas gifts, down slightly from 27 percent last year. Among other households, 35 percent plan to spend $200-$500, down from 37 percent last year, and 39 percent are planning to spend less than $200, up from 35 percent in 2008.
ONLINE BUYING INTENTIONS
Consumers will also approach online holiday shopping very cautiously, holding off on big ticket items and holding out for major incentives like free shipping and discounts, according to The Consumer Internet Barometer, a separate survey produced quarterly by The Conference Board and TNS. The Consumer Internet Barometer surveys 10,000 households across the country and tracks who’s doing what on the Internet.
"Even as the economy is starting to show signs of improvement, consumers are taking a cautious approach to their purchase decisions, focusing on lower ticket items that clearly communicate value," notes Bridget Armstrong, head of Consumer Sector at TNS.
Budget-friendly items appear at the top of consumers’ online holiday shopping lists. The top categories include books, apparel/footwear, toys/games and movies/DVDs. The most preferred shopping sites are those operated by online retailers such as Amazon.com. Retail stores and catalog operators such as Walmart.com or BestBuy.com are a close second.
About 90 percent of online consumers cite free shipping as a major incentive. More than two out of three said special deals and offers not available in stores as well as coupons and discounts would encourage them to spend more.
US REGIONS:
New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont
Middle Atlantic: New Jersey, New York, Pennsylvania
East North Central: Illinois, Indiana, Michigan, Ohio, Wisconsin
West North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota
South Atlantic: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, West Virginia
East South Central: Alabama, Kentucky, Mississippi, Tennessee
West South Central: Arkansas, Louisiana, Oklahoma, Texas
Mountain: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, Wyoming
Pacific: Alaska, California, Hawaii, Oregon, Washington
The Conference Board (www.conference-board.org)
The Conference Board is the leading global business knowledge network for the world's largest
corporations. The Conference Board is dedicated to helping companies improve performance and
strengthening the role of business in society. More than 2,500 companies in 60 countries are
members of The Conference Board, which produces the Consumer Confidence Index, the Help-Wanted
Index and Business Cycle Indicators for nine countries worldwide.
For more detailed information, email tortorici@conference-board.org.
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