Nov 3, 2008

Pessimistic Consumers Seek Value in Holiday ShoppingBy SeekingAlpha.com

With the economy weighing heavily on their minds, many Americans plan to spend less and shop differently and more carefully during this year’s holiday season, according to Deloitte’s 23rd Annual Holiday Survey of retail spending and trends, reports Retailer Daily.

Among the findings of the study:

A record number of consumers say they are pessimistic about the economy:

• More than half (53%) say they expect the economy to weaken next year – the highest in more than 10 years of responses to this question – compared with 43% last year.
• Almost one in five consumers (19%) said they feel that their jobs are not very secure or not secure at all. This percentage is also a record high for the 1997 – 2008 period.
• Almost six in 10 consumers (59%) expect to reduce their spending this holiday season.
• Higher food prices (73%) and higher energy prices (69%) were the top two reasons for spending less, outpacing the economy (61%) and job uncertainty (18%).
• Some consumers have another good reason to cut back on spending: 11% said they are still paying off holiday debt from last year.
• On a more positive note for retailers, consumers who received a federal government stimulus check this summer said, on average, 20% of their check was still not spent – meaning those funds are available for holiday purchases, if needed.

Other findings issued by Deloitte…

Read complete article.