Tuesday, October 20, 2009

NRF: Economy Impacting Holiday Spending Plans for Two-Thirds of Families

by Calculated Risk on 10/20/2009 12:12:00 AM

From the National Retail Federation: Economy to Impact Two-Thirds of Families this Holiday Season, According to NRF Survey

Retailers are about to embark on the holiday season of the serious bargain hunter. According to NRF’s 2009 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, U.S. consumers plan to spend an average of $682.74 on holiday-related shopping, a 3.2 percent drop from last year’s $705.01.

It comes as no surprise that the economy was an overriding theme throughout this year’s survey. Two-thirds of Americans (65.3%) say the economy will affect their holiday plans this year, with the majority of these consumers saying they’re adjusting by simply spending less ...

Retailers are compensating for soft sales this holiday season by cutting back on inventory. ... “In anticipation of weak demand, many retailers scaled back on inventory levels to prevent unplanned markdowns at the end of the season,” said NRF President and CEO Tracy Mullin ...

“While the economic climate has shown some improvement from last holiday season, retailers are not out of the woods yet,” said Phil Rist, Executive Vice President, Strategic Initiatives, BIGresearch. “With a variety of factors still up in the air, including uncertainty over job security, many Americans just aren’t buying into the talk of recovery.”
And this will mean few seasonal retail hires too.

The NRF is so depressing ...