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Amex Spending & Saving Tracker Predicts ‘Joyful’ Holidays

The 2009 holiday shopping season may turn out better than expected, according to the November American Express Spending & Saving Tracker. Results indicate that consumer attitudes and spending plans for the next 30 days could provide some relief to retailers seeking an end-of-year bounce in sales.

Forty-one percent of the general population reports their attitude going into the holiday season as “joyful,” and 42% are “neither joyful nor gloomy.” Only 13% said they are “gloomy.” Among higher-spending segments of the population, 69% of young professionals and 53% of affluent respondents reported being “joyful.”

10% of overall respondents plan to spend more on holiday gifts this year than last, and 43% plan to spend about the same. In the next 30 days, 22% of overall respondents plan to spend more than they did in the last 30 days.

The Spending and Saving Tracker is more optimistic in its outlook for the 2009 holiday shopping season than several recent major research studies, writes Retailer Daily. Nielsen, Deloitte and Retail Forward have all predicted essentially flat holiday sales, while the National Retail Federation (NRF) has predicted a 1% decline. However, the Spending and Saving Tracker is based on more current data, suggesting consumers’ holiday spending outlook has improved in the past month.

The Spending and Saving Tracker shows that the internet will be a popular resource for holiday shoppers. 79% of overall respondents plan to use the internet as a tool for holiday shopping, 45% plan to purchase items online, 28% will use the internet to buy hard-to-find items, 27% will use the internet for product research, and 25% will go online for gift ideas.

Despite the consumer optimism displayed by the Spending & Saving Tracker, shoppers are still looking for ways to save money. The survey showed that that:

• 70% of overall respondents say discounts would be their top motivator
• On average, a 30% discount would motivate overall respondents to make a purchase. However, 47% of young professionals say they would be willing to begin spending with discounts as low as 10%.
• 45% could be tempted to start their holiday shopping if they were offered free or faster shipping.
• Other key motivators for overall respondents were a free gift with purchase (35%) and bonus reward points (22%). In addition, free gifts appeal to 52% of young professionals and bonus reward points had higher ratings among young professionals (45%) and affluents (33%).

The American Express research was completed online among a random sample of consumers aged 18+. The research sample of 2,011 adults surveyed the general U.S. population, as well as affluent and young professionals subgroups. (Affluents are defined as having a minimum annual household income of $100,000. Young professional respondents are defined as less than 30 years of age, having a college degree, and a minimum annual household income of $50,000.)