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The Green SheetGreen Sheet

The Green Sheet Online Edition

October 27, 2008 • Issue 08:10:02

ISOMetrics

The indomitable holiday spirit

Home prices are down, the economy is flagging, but U.S. consumers are ready to shop for the holidays - more than last year. Some will alter their habits, shopping smarter by looking for deals, shopping online and, with gas prices what they are, shopping closer to home. But they're still opening their wallets. The numbers in the studies vary, but they project an overall 2008 holiday spending increase.

Ornament Deloitte Research, a subsidiary of Deloitte Services LP, predicts holiday sales, not including motor vehicles and gas, will increase 2.5 to 3 percent between November 2008 and January 2009.

Ornament The National Retail Federation projects an increase in holiday spending of 2.2 percent year over year.

Ornament An Archstone Consulting study suggests a 0.5 to 1 percent increase in holiday spending this year.

Ornament TNS Retail Forward predicts 1.5 percent growth in 2008 over fourth quarter 2007.

Ornament About 25 percent of consumers surveyed by retail researcher NPD Group indicated they would spend less money this holiday season. Eleven percent said they will spend more.

Ornament According to a new Rasmussen poll, 25 percent of American consumers will spend the same amount on holiday gifts as in 2007; 10 percent will spend more.

Ornament Lehman Brothers (now Barclays Capital) expects holiday Internet sales to grow by 8 percent year over year.

Ornament TNS Retail Forward projects a 9 percent growth in holiday sales from 2007 to 2008 for online retailers.


Trend watch

The following 2008 holiday shopping trends were identified by Iconoculture, a research company studying how the current economic climate will affect holiday shopping:

Ornament Bargains: Shoppers won't pay as much per purchase in 2008; they are looking for discounts at the POS.

Ornament Ship it later: Due to increased air travel costs, more people will stay home for the holidays. Smart shoppers will buy gifts for distant loved ones at post-Christmas sales and ship them after the rush.

Ornament Gift cards: Gift cards may hold smaller dollar amounts than in 2007, but they will still be a popular gift in 2008.

Ornament Me too: Weary shoppers will reward themselves for sacrificing throughout the year by getting a few things for themselves at holiday sale prices. end of article

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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