Nov 5, 2007

Gift-Buying Expected to Hold Steady in Southern California; Consumers Will Spend Less Overall, Says Deloitte SurveyBy DeloitteEarthTimes.org

Los Angeles — While many Americans say they intend to spend less during this year’s holiday season, spending on gifts is expected to hold steady and the number of gifts consumers plan to give is up compared with 2006, according to the 22nd Annual Holiday Survey of retail spending and trends, commissioned by Deloitte.

Nationally, the survey shows that four in 10 consumers (41 percent) expect to reduce their spending this holiday season; in Southern California, 43 percent reported that they will spend less than last year. Areas in which spending is likely to be down include socializing/entertaining and non-gift clothing.

The largest percentage of Southern Californians — 49 percent — said they plan to spend about the same on gifts as they did last year. Additionally, consumers in Southern California plan to spend more than the national average on gifts: $1,951 per person in Southern California versus a total of $1,851 as the national average. The total average spending of Southern California, however, is lower than other major metropolitan areas, including New York, Chicago and San Francisco.

“Southern Californians have been hit by a number of tough challenges, including energy and food costs, and a sharp decline in the housing market,” said Jackie Fernandez, Deloitte Retail Partner in the Pacific Southwest. “We expect that they will be more restrained in their general holiday spending and their personal indulgences, but they are determined to maintain the spirit and generosity of the holidays.”

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