Holiday Spending Will Be Down Says NPD Group
October 26, 2009 at 5:22 AM (PT)
THE NPD GROUP has released the results of its annual survey of consumers’ holiday spending intentions. Thirty percent of consumers surveyed told NPD they ‘plan to spend less’ this holiday, which is a four point increase over last year’s results.
U.S. Consumers' Spending Intentions
Plan to Spend More 11% 11%
Plan to Spend About The Same 59% 63%
Plan to Spend Less 30% 26%
"That 4% increase is certainly a sign of the times. On the other hand, that 4% is not as dramatic as it could have been." said NPD Chief Industry Analyst MARSHAL COHEN. "I think consumers will be looking for the right gift, rather than the most extravagant or expensive one. That combined with the soft numbers we are up against from holiday last year, and I think we will see growth, albeit a modest 0.5 to 1.5%."
"The survey results point to a return of more gifts being made of sweaters, fragrances, music, books, movies and wallets again," added COHEN. "We are also seeing make-up and TV’s showing signs of growth. Other standouts are notebooks/netbooks. They have been growing and will continue to grow through the holiday."