Oct 6, 2010

NPD’s Holiday Retail OutlookBy TMCNet.com

The NPD Group, Inc., a leading market research company, released the results of its ninth annual survey of consumers’ holiday spending intentions. The study’s results suggest that consumers will approach this holiday shopping season with care.

U.S. Consumers’ Spending Intentions, 2010 vs. 2009 2010 2009 Plan to Spend More 9% 11% Plan to Spend About The Same 61% 59% Plan to Spend Less 30% 30% Source: The NPD Group, Inc./Annual Holiday Survey The majority of consumers say they plan to spend about the same as last year, 61 percent this year, up 2 points from last year. About one-third of survey respondents say they plan to spend less, which is the same as last year; and only 9 percent say they plan to spend more, down 2 points from 2009.

“Even though the recession is technically over, lingering concerns are keeping consumers in a cautious frame of mind,” said Marshal Cohen, chief industry analyst, The NPD Group, Inc. “We are seeing what I call ‘calculated consumption.’ and I believe that it is a consumer mind-set that will be around after holiday shopping is over.” Evidence of consumers’ more thoughtful and cautious approach this holiday can be seen in the fact that 62 percent of consumers say they plan to do some kind of ‘homework’ prior to making a purchase. Almost 44 percent of consumers say they will comparison shop before they buy a gift. Thirty-seven percent say they will use ads or circulars to guide their gift shopping, and 33 percent say they will compare prices online before they shop in a store.

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