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Consumer Caution Rampant this Holiday Season

November 11, 2005

This holiday shopping season could be challenging for retailers, according to Port Washington, NY-based NPD Group’s Holiday Survey. Sixty-nine percent of American consumers indicated they plan to spend the same amount this holiday as last year, 20% of consumers indicated they plan to spend less and only 12% plan to spend more. Most plan to “shop for value” by waiting for sales and spending more at discount retailers. On average, survey respondents plan to spend $661 this holiday season. Value, quality of merchandise and selection are the top three shopping influences.

“Consumers have many options this year,” said Marshal Cohen, co-president, NPD-Fashionworld. “Given the wide range of styles, models, products, prices and retailer alternatives and the commitment to finding value, understanding where the opportunities are and what’s important to consumers is going to be critical to retailers’ holiday season success.”
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