What Do Consumers Plan to Buy?
When shoppers were asked what they planned to buy for Christmas 2000, apparel and toys topped the list. Of the gifts shoppers planned to purchase, 34% were apparel, 25% were toys, 17% were electronics, and 11% were jewelry. These percentages are similar to those reported in 1999: 35% apparel, 22% toys, 15% electronics, and 11% jewelry.
For Christmas 2000, the procrastinating shopper planned to buy slightly more apparel and toys than other shoppers. Of the planned late purchases, 38% were apparel, 27% were toys, 16% were electronics, and 9% were jewelry.
Would Shoppers Spend More in 2000 than in 1999?
Overall, 37% of shoppers planned to exceed their 1999 holiday expenditures on Christmas gifts in 2000. One-third planned to spend the same amount as in 1999, and 30% planned to spend less. This year's gift spending plans were almost the same as reported in last year's survey: 38% percent planned to spend more, 32% planned to spend the same amount, and 30% planned to spend less.
Although these estimated holiday expenditures may appear optimistic based on current economic conditions and soft retail sales in October, the wealth that U.S. consumers have accumulated over the past several years is supporting their confidence to spend more.
The greatest promise of profit for retailers was from the procrastinating shopper, who was prepared to lay out significantly more for Christmas gifts this year than last year. Half of these shoppers planned to spend more, while the rest were equally divided between spending the same amount or less.
This planned spending represents a significant increase over that reported by late shoppers in last year's survey. In 1999, 40% of December shoppers said they planned to spend more on Christmas gifts in 1999 than in 1998; 31% planned to spend the same amount, and 29% planned to spend less. Together with the late shoppers' inclination to buy items on impulse, their increased willingness to spend on gifts was a hopeful sign for retailers.
According to data from the NPD Group, 1999 December sales of apparel rose 7% over 1998 sales (compared with a year-over-year increase of 4% for total apparel), indicating that December shoppers did spend more. As expected, December had the highest monthly sales numbers for the year.
According to the survey responses, Christmas gift shopping is not the only source of the year-end sales boost. Almost half (46%) of consumers admit to buying items for themselves either regularly or sometimes when shopping for others, and another 32% say they do so infrequently. Surprisingly, men are more likely than women to indulge themselves, as are consumers aged 25 to 34 or 56 to 70. |
