NPD predicts few will cut their holiday spend
HTT Staff -- Home & Textiles Today, 10/24/2013 2:10:33 PM
Port Washington, N.Y. - The NPD Group's annual shopping survey found 67% of consumers saying they will spend about the same as last year, 12% planning to spend more and 21% trimming their budgets.
That's an improvement over 2012, when 10% told the company they would spend more and 23% said they would tighten their purse strings.
"Consumers are feeling better about the economy compared to last year and they plan to take advantage of sales during key periods," said Marshal Cohen, chief industry analyst, The NPD Group, Inc. "But this year's holiday will be a tricky one for retailers. With fewer days between Thanksgiving and Christmas, Government distractions, and lack of newness in the marketplace, retailers will have to rely more on promotions to excite the consumer."
Other findings from the survey:
- Purchase drivers: special sale price, 57%; overall value for the price, 56%; free shipping, 42%; unique products or brands, 17%;
- Already started shopping: 17% vs. 16% last year;
- Will start shopping before Thanksgiving: 22% vs. 21% last year.
Top categories are clothing, toys and music/DVDS. There was a slight uptick in the number of consumers who said they would purchase housewares (which at NPD includes home textiles): 9% compared to 8% last year.
The retail predictions that have been issued so far have been at odds. Accenture forecast an 11% jump in consumers spending, but it's worth noting its survey was fielded prior to the government shutdown.
The National Retail Federation has forecasted a 3.9% increase in total retail sales for the holiday season, while the International Council of Shopping Centers is expecting 3.4% growth and ShopperTrak puts the number at 2.4%.
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