Monday, November 23, 2009

Report says: Consumers in a frugal holiday mood

Who wants to spend every penny he doesn't have when the fear of losing your job, and/or increased taxes while reduced medical benefits looms? (still doing my best to avoid political opinion here)

Survey: Consumers in a frugal holiday mood
A new survey shows consumer spending likely will be lower this holiday season, as U.S. households will spend an average of $390 on Christmas gifts this year compared to $418 a year ago.

The survey of Christmas spending intentions, conducted for The Conference Board in November by TNS, included 5,000 U.S. households.

“Consumers are approaching the holiday season very cautiously,” said Lynn Franco, director of The Conference Board Consumer Research Center, in a written statement. “Job losses and uncertainty about the future are making for a very frugal shopper. Retailers will need to be quite creative to entice consumers to spend, both in stores and online this holiday season.”

In addition to being frugal, another study found that nearly a quarter of shoppers are expected to pay cash when holiday shopping this year.

Thriftiness trend continues among American consumers. Will this generation return to frugality as a permanent lifestyle? Consider that each period of unimaginable boom in the past has lead to such situation.


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