Are you thinking about your holiday shopping budget yet?
Maybe you haven’t started planning out how much you’ll spend this year, but retailers are already forecasting for the Christmas shopping season…and it doesn’t look so good for them.
High unemployment, low consumer confidence and a barrage of other economic factors will likely have folks like you and me keeping a close eye on how much we spend on gifts, decorations and everything else that comes with Christmas, Hanukkah and Kwanza. Even though we’re supposed to be in some sort of a recovery…industry analysts aren’t so jolly.
The current predictions from ShopperTrak indicate retail sales growth in November and December could be just 3%. Last year there was 4.1% sales growth, and that was better than expected.
The gloomy forecast is mainly due to the fact that Americans have been spending less throughout 2011. Everything from job worries to high gas prices have most people keeping a tight grip on their wallets and purses.
That means most shoppers will be looking for bargains before and after Black Friday.
In-store traffic is also expected to be down this holiday season as more people opt to shop online. More of us are practicing comparison shopping, and that’s a lot easier to do from the comfort of your own home when the other option includes traffic and crowded malls.
All this is a big deal because holiday shopping makes up 20% of annual retail activity.
Another recent study released by behavioral commerce research firm SteelHouse indicates Americans are changing the way they shop – and it could mean a not-so merry Christmas for retailers.
Out of 100o people surveyed…
- 62% will spend less money overall
- 50% will comparison shop more
- 31% won’t buy anything online without a discount or free shipping
- 28% will spend more time browsing for gifts online than in stores
SteelHouse CEO Mark Douglas says it’s going to be tougher for stores to attract consumers, and they’d better do it fast before a better deal catches the shopper’s eye.
“It’s clear that shoppers this holiday season aren’t going to buy unless presented with a compelling offer. The challenge for retailers is figuring out the right deal for every shopper since the same offer isn’t going to work for everyone. The winners this holiday season will be those retailers who tailor their offers to shoppers while they’re still shopping, before they move on and see a competitor offer.”
So it looks like it’s going to be quite the battle between stores and shoppers this season. The National Retail Federation will release its forecast early next month.
We Want to Know!
What are your plans for holiday shopping? Will you spend more or less? Have you started saving already, or have you been unable to do so?
Tell us your tips for a smart shopping strategy during this crazy time of year!
If you haven’t checked out the first two editions of our Psychology of Shopping series, make sure you do so. We’ll have even more advice for savvy shoppers as we get closer to Christmas!
If you’re running low on personal checks, you can refill with some Seasonal Checks including wintry scenes and holiday themes. Take a look! Checks are a great way to keep track of your budget during the holidays because you’re more aware of what you’re spending, and more likely to write purchases down in a check register.
Image: Ambro / FreeDigitalPhotos.net
+Kasey Steinbrinck writes regularly on personal finances and the U.S. economy for Check Advantage. Visit them today and view their most popular checks including a big collection of Classic Checks. Contact Kasey to request free content for your website or blog.
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I think it is too early for a Christmas shopping.. But hope you find a better gifts!
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