A Consumer Ritual: Shopping for the Holidays
Each year, retailers, manufacturers, and mills look forward to the highest grossing selling season - the Christmas holiday. According to data from the U.S. Census Bureau, the fourth quarter accounts on average for 28% of annual retail sales and 31% of apparel and accessory sales. These relatively high percentages underscore the importance of understanding consumers' holiday shopping patterns.
The start of the new century has proven to be a year of economic transformation and volatility for the United States. After the greatest run in history, consumer confidence has fallen to the lowest level in 13 months. Economic growth has slowed considerably; third-quarter GDP growth fell from a 5.7% annualized rate in 1999 to 2.4% this year, down from growth rates of 5.6% in the second quarter of 2000 and 8.3% in the first quarter. Standard and Poor's stock price index fell 7% between October 1 and early December, while the NASDAQ fell 24% after plummeting 29% from its record high in March 2000.
Did these changes affect consumers' state of mind as the first Christmas season of the new millennium approached? For the second consecutive year, Cotton Incorporated's Lifestyle MonitorTM included holiday shopping questions, to offer insights into consumer behavior during this key season.
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When Does Holiday Shopping Really Begin?
Shopping for the holidays is an all-year affair for a select few, but many wait until the last possible month to begin. Six percent of Lifestyle Monitor respondents report that they shop for Christmas gifts throughout the year. Another 19% of consumers start shopping between January and September for that year's Christmas gifts. October appears to be the "swing" month for Christmas shopping, as 20% of shoppers begin searching for the perfect gift.
By November, an additional 24% of consumers have begun to participate in the shopping frenzy. With almost three-fourths of the shopping population making holiday purchases before December, it is no wonder that retailers begin stocking the shelves and decorating for Christmas in October.
When Do Consumers Start Buying Christmas Gifts?
|
|
Jan.–Sept. |
October |
November |
December |
| Men |
17 |
16 |
25 |
28 |
| Women |
20 |
22 |
22 |
27 |
| 16–24 |
15 |
21 |
30 |
41 |
| 25–34 |
22 |
18 |
25 |
24 |
| 35–55 |
25 |
26 |
19 |
21 |
| 56–70 |
17 |
29 |
20 |
18 |
| Total |
19 |
20 |
24 |
27 |
In December, the remaining 27% of shoppers begin their search (including the 3% who purchase gifts for next year's Christmas at this year's after-Christmas sales). Which shoppers wait until the last month of year? Not surprisingly, 39% are between the ages of 16 and 24, and 60% are under 34 years of age.
Convenience is of the essence. The majority of procrastinating shoppers are not married (79%) and work outside of the home (70%). Most (56%) are without children, half have a high school diploma or less education, and 39% prefer to shop at specialty stores, such as The Gap. And with the clock ticking, these shoppers are more likely to buy on impulse (53%) than to plan their purchases (47%).
Women tend to shop earlier and longer for Christmas. When shopping for apparel in a particular store, women spend 40 minutes more than men, on average. So it comes as no surprise that women purchased 89% of all apparel items sold as gifts in 1999, according to data from the NPD Group. |
