Men are notorious for being last-minute Christmas shoppers, and I must admit, I fall into that category. However, this year, it appears that last-minute shopping symptoms are being demonstrated by more than just the male population.
Holiday shopping got a good boost on Black Friday and Cyber Monday (the Friday and Monday following Thanksgiving) with a 5.1% increase in retail industry sales (exclusive of autos, gas stations, and restaurants) over 2006. Although consumer outlays have dropped a bit since then, aggressive marketing promotions and price reductions during the past few days have resulted in an upward tick in sales.
Still, the purchasing of women’s clothing, which is a common barometer of holiday shopping expectations, is down about 6% this year. The decline could be due to concerns about the economy or even the perceived lack of compelling fashions. Whatever the reason, some market analysts are afraid such a decrease in sales could portend a less-than-banner holiday shopping period, especially since women make the majority of retail purchases.
Online retailers, most of which have limited time left if shoppers want delivery by Christmas, anticipated 26% growth in holiday spending, but purchases have not lived up to expectations. The increase has been only about 18%, primarily because of the pull back by those with concerns about economic issues such as the housing market, higher food and energy prices, and unknowns related to mid-East military operations and US presidential politics.
Even so, when the results are tallied from online purchasers, early bird shoppers, and those who wait until the last minute, the National Retail Federation expects that aggregate holiday spending will be approximately 4.0% more than last year. I expect it to be a bit higher.
With just a few shopping days left before Christmas, many retailers are hoping sales will climb. Shoppers, on the other hand, are waiting and hoping that discounts will increase and prices will fall lower and lower. If stores make substantial bargains available, it’s more likely they will attract shoppers, even those who are being especially frugal this year because of worries about the economy. Still, shortages of some of the “hot” toys and electronic gadgets will probably impact shoppers negatively, because of the difficulty they are having in locating “must have” items.
For those who cannot find the right gift, are facing time constraints, or just want to lessen the stress of holiday shopping, there is always the gift card, which is experiencing a significant increase in popularity. Because of greater personalization and wider availability, sales of gift cards are expected to total some $26.3 billion this holiday season, compared to $24.8 billion last year.
On average, gift card purchasers are projected to spend upwards of $122.59, about $6.00 more than expended in 2006. Even so, the purchasing of cards is affecting many stores since it often puts a dent in impulse buying. On the other hand, because gift cards enable the recipients to make their own choices in merchandise and services, stores are experiencing a lower percentage of returns.
Over half (57.5%) of the holiday shoppers this year have indicated they plan to provide a receipt in most or some of their gifts in order to make returns—should they be desired—more convenient, for both the recipient and the stores. Yet only around one-third of consumers are anticipated to make any returns at all.
Although retailers might be wishing for an even better 2007 holiday season, there is still time, albeit a limited amount, for last-minute purchasers to make a difference. And for those who are not quite sure what gift to buy or can’t find the one they want, I understand most retailers are keeping an extra supply of gift cards on hand. That’s good news for people like me.