Consumers Put Restrictions on Holiday Spending

Consumers are putting the brakes on holiday spending. In its annual holiday shopping survey, Accenture asked 537 U.S. consumers 43 questions about their buying and spending outlook for 2008. The data highlights the challenges facing retailers in the battle for their customer’s dollars during the 2008 holiday shopping period.

According to Accenture:

• 88% stated that they will restrict their holiday spending to the same level or less compared to 2007 – increased food, home energy costs and gas prices were cited by consumers as being key factors.

• 58% of consumers believe that they will stick to their budget this year – compared to 48% in 2007. Although 59% of consumers are likely to use a credit card to make their holiday purchases and a quarter (25%) admit that they are unlikely to pay off those purchases within a month.

 
According to Accenture, the research illustrates that retailers will be seeing a steadier rate of purchasing by consumers across the 2008 holiday season. A significant proportion of consumers appear to be starting their holiday shopping early this year—45% expect to have completed the bulk of their shopping before Thanksgiving. However, 38% will shop late in the season to take advantage of discounts. 

Other findings from the survey:

Black Friday:  Almost half (46%)  of respondents typically shop on Black Friday; only (42%) are likely to shop on Black Friday this year. 

Cyber Monday:  Nearly one in three (29%) indicated their intent to shop on Cyber Monday, of which a fifth of consumers (21%) plan to spend between $251-$500.

Gifts for Colleagues:  Only 14% of consumers will buy gifts for colleagues this holiday season; nearly one-third (32%) are spending less on work colleagues compared to last year.

Consumer Budgets: 54% of consumers expect to spend at least $100 less than in 2007 and 22% plan to spend $250 less than last year.

Hot Gifts:  Just 29%expect to have a “hot gift” on their shopping list this year – less than the number of 2007 (33%).

Multi-Channel Shopping:  88% say they will research gifts online before buying but 31% will not buy anything online this year.

Holiday Travel:  61% of consumers do not expect to travel for the holidays this year.