Holiday Shopping to Be a Bit Restrained, Consumers to Spend $923 on Average

Though shoppers still plan to spend more on the holidays this year than last, consumers say they will restrain their spending this holiday season, according to the National Retail Federation’s “2007 Holiday Consumer Intentions and Actions Survey,” conducted by BIGresearch, reports MarketingCharts.

U.S. consumers plan to spend an average of $816.69 on holiday-related shopping and an additional $106.67 on special “non-gift” purchases - taking advantage of special promotions and discounts to treat themselves.

The total planned holiday-related spending average of $923.36 is an increase of 3.7 percent from 2006 and in line with NRF’s economic forecast of 4.0 percent holiday sales growth, projected to reach $474.5 billion.

“Shoppers will be a little more conservative with their spending as they become more aware of the softness in the economy,” said NRF President and CEO Tracy Mullin. “It is safe to say that many retailers will be competing on price, causing this holiday season to be very promotional - a tremendous win for consumers.”

While the traditional kickoff to the holiday season is Black Friday - the day after Thanksgiving - many won’t wait this year: 40.3 percent of shoppers say they will begin holiday shopping before Halloween.

Other findings from the NRF/BIGresearch survey:

• The internet will once again play a crucial role for retailers this holiday season as consumers, on average, plan to do 30.2 percent of their shopping online compared to 28.9 percent in 2006.
• As expected, most holiday budgets will be allocated to gifts, with the average person spending $469.14 on family, $90.13 on friends, $22.79 on coworkers, and $37.45 on others, such as clergy, teachers, and babysitters.
• Discounters can expect the most traffic as 68.4 percent of consumers plan to shop there (compared with 70.3 percent in 2006).

MarketingCharts has more findings from the study.