While US households are expected to spend an average of $390 on Christmas gifts this holiday season, down from last year's estimate of $418, New Englanders are expected to spend over $500, which is by far the most, The Conference Board reports today. The survey of Christmas gift spending intentions covers a nationally representative sample of 5,000 US households. It was conducted for The Conference Board in November by TNS, the world's largest custom research company.
"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."
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.
U.S. 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
How much will you be spending on gifts this Christmas?*
TOTAL U.S. $390
REGION
New England $534
Middle Atlantic $421
E.N. Central $427
W.N. Central $470
South Atlantic $346
E.S. Central $390
W.S. Central $374
Mountain $332
Pacific $343
AGE OF HOUSEHOLD HEAD
Under 25 $257
25-34 $345
35-44 $356
45-54 $400
55-64 $413
65 & over $414
HOUSEHOLD INCOME
Under $15,000 $180
$15,999-$25,000 $218
$25,000-$35,000 $307
$35,000-$50,000 $343
$50,000 & over $514
* These figures represent average planned household expenditures
on Christmas gifts for 2009.
How much will you be spending on gifts this Christmas?*
TOTAL U.S. 100.0%
Under $100 21.6%
$100-$199 17.3%
$200-$299 13.0%
$300-$399 12.1%
$400-$499 9.8%
$500-$749 13.0%
$750-$999 5.6%
$1,000 & over 7.7%
* These figures represent average planned household expenditures
on Christmas gifts for 2009.
Source: The Conference Board Christmas Spending Survey, November 2009
Which items will you purchase online this Holiday
season?*
Books 41.2%
Apparel & Footwear 40.0
Toys/Games 35.0
Movie Videos & DVDs 33.9
Gift Certificate 25.0
Electronics 23.6
Music CDs 19.6
Computer Software 13.0
Other 9.4
Wine & Spirits 1.1
Home & Garden 0.6
Jewelry 0.5
Tools & Hardware 0.2
*Based on online households who intend to make an online purchase
this holiday season.
Which incentives would encourage you to spend more online this
Holiday season?*
Total U.S. 100.0%
Free shipping offers 90.1%
Free return postage 41.6%
Able to return to physical store 48.9%
Can find things that are not available in stores 54.1%
Special offers/deals that are not available in stores 69.7%
Guarantee delivery date 32.4%
Coupons/discounts 68.0%
Other encouragement 2.5%
*Based on online households who intend to make an online purchase
this holiday season.
Source: The Conference Board TNS Consumer Internet Barometer Survey, Q4 (October) 2009
Source: NEW YORK, Nov. 23, 2009 /PRNewswire/ --