Consumers Dig Deep but Find Less Money

The overwhelming majority of shoppers will maintain a tight grip on their wallets as they hit the stores this holiday season, with 83% expecting to spend the same or less on holiday gifts compared to 2009, the latest Accenture consumer holiday shopping survey shows.

“The 2010 holiday shopping season will be spectacularly unspectacular for many consumers, but that will suit retailers who remember well the turbulence of Holiday ’08,” said Janet Hoffman, managing director of Accenture’s Retail practice. “Our data suggests that consumer spending will be flat compared to last year, aided by a continuation of conservative discounting by stores and the limited discretionary income of many shoppers. In 2009, the trust that retailers showed in their forecasting and ordering systems to control their inventory was crucial to their success. They will need to exercise that same trust and discipline again if they are to be a winner this season.”

The annual Accenture Holiday Shopping Survey also revealed that discounts will be the key motivator for most consumers this year, despite moderate reductions by retailers in 2009. More than three quarters (87%) of respondents will not be moved to buy without a discount of at least 20%, and one quarter of (25%) said that they will be expecting an aggressive discount of 50% or more in order to make a purchase.

The study also highlighted a rise in consumer apathy toward the “Black Friday” shopping tradition. More than half of consumers (53%) said that they were unlikely to shop on Black Friday, or they have not yet decided (48% in 2009). Conversely, the popularity of online shopping continues to grow, as 69% of respondents said they will be buying holiday gifts online this year, up from 64% in 2009.

“The growing ambivalence toward the traditional Black Friday shopping trip is being driven by a number of factors,” said Hoffman. “The increase in the number of homes with broadband Internet access means that many shoppers will prefer to stay at home and bag the offers online rather than brave the crowds. Combined with this, over recent years we’ve seen retailers maintain their discounts throughout the season rather than focusing activity around Black Friday.”

Only 13% of consumers said that they had been saving money throughout the year for their holiday shopping and one third (32%) believe that their dollar will not stretch as far as in 2009. Additionally, 25% felt that paying for the holiday season makes it a stressful time of year, which could potentially impact their spending.

The popularity of shopping online for holiday gifts continues to grow, with 41% of respondents buying at least half of their holiday gifts online and 38% planning to spend between $100 and $250 online.

However,although one in five consumers (21%) said that they had used Facebook for shopping in the past year, 88% said that they would not be buying holiday gifts via a social network, mobile phone or smartphone. One quarter (26% attributed their reluctance to privacy or security worries, and one in five shoppers (20%) were unclear about the benefits they would receive by using these channels for shopping.

Accenture conducted an online survey using a representative sample of 526 U.S. consumers in September 2010.