US households are expected to spend an average of $390 on Christmas gifts this year, down from last year’s estimate of $418, the economics group, the Conference Board, reported this week. The US average compares with average planned spending of $990 on gifts, in Ireland.
The survey of Christmas gift spending intentions covers a nationally representative sample of 5,000 US households. It was conducted by TNS, the world’s largest custom research company.
Earlier this month, we reported on the annual Deloitte European holiday season spending survey and despite the recession, the Irish remained the big spenders in the survey.
The Irish will spend about double the level of the UK, Germany and France.
The average spend per household in Ireland will be €1,110. Of this, €660 ($990) will be spent on gifts, €265 will be spent on food, and €185 spent on socialising.
On Tuesday, the day of a national public staff strike in the Republic of Ireland, there were reports of long tailbacks of traffic, as public service staff headed across the border for Christmas bargains, in Northern Ireland.
“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
US 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,” Bridget Armstrong, head of Consumer Sector at TNS, commented.
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.
