In its eighth annual study examining consumers’ holiday spending intentions, The NPD Group market research firm has found that value and price top the list of considerations when shopping. This year 30 percent of consumers surveyed told NPD they “plan to spend less” this holiday; in a five-year high, 45 percent of respondents noted they […]
In its eighth annual study examining consumers’ holiday spending intentions, The NPD Group market research firm has found that value and price top the list of considerations when shopping. This year 30 percent of consumers surveyed told NPD they “plan to spend less” this holiday; in a five-year high, 45 percent of respondents noted they plan to comparison shop before making purchases. Sixty-one percent said they will do research online before heading to the stores. And price also was the leading factor in deciding which retailers to shop.
But those banking on prices dropping as the holidays inch closer may wind up out of luck, as retailers in general are working with tighter stock than in the past. “Retailers are carrying less inventory, and the products that consumers really want may just run low or even be out of stock in some stores,” said Marshal Cohen, NPD Group’s apparel analyst. “If consumers wait too long expecting bigger discounts, they may just be surprised to find that the item they want won’t be there.”
“The gift of the leaner inventory may be the ‘gift that keeps on giving’ to retailers this year,” Cohen added. “One of the primary things retailers need to do is to wean consumers from the expectation of deeper and deeper discounts as the holiday season unfolds. This process of ‘discount detox’—weaning the consumer off the deep discounts—is critical in getting retailers to return to being profitable again.” Visit www.npd.com.
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