It’s that time of year again – the holiday shopping season. Many big name retailers have announced plans to top last year’s deals both in-store and online in an effort to meet the high expectations of budget-conscious consumers. But because Americans have become even more leery of the state of the US economy, there has been speculation around how much tighter they’ll keep the purse strings on their holiday spending.
Last month, researchers released the 2011 projections for holiday trends, and the numbers aren’t exactly blowing last year’s spending and sales figures out of the water. The most intriguing prediction is that, while shoppers will be spending a slightly lower total amount on gifts, they will be spending significantly more on non-gift items for themselves and their families. The survey from which these results were generated did not ask questions about what non-gift items they will buy, or why they are spending more on themselves this time of year, so I’ve made a few predictions of my own. I believe shoppers are purchasing other items for themselves and their families during the holiday season because they are waiting to buy certain items until the end of the year when they can get the best sales and lowest prices. With this new trend, demand is put on hold until this enormous promotional period.
My prediction stems from one consumer priority: budget management. Consumers have gotten better and stricter about maintaining tight budgets, which has affected the way they shop. I believe shoppers are waiting until the end of the year to make non-gift purchases because they want to take advantage of what they expect to be the best deals of year. Waiting until the end of the year to buy requires discipline, patience, and planning. After three years of this recession, American consumers are now skilled enough at budgeting and bargain hunting that they can and will wait to make these extra purchases until the holiday shopping season.
But what exactly are they buying? In order to wait months for the purchase, the items can’t be immediate necessities. And based on the survey, the amount of money each shopper is spending on non-gift items is approximately $130.43, so we can assume they’re not buying a new car. My educated guess is that shoppers are making purchases on clothing, home goods, and other semi-necessities. These are the things we can live without buying or replacing until we know we are getting the absolute best deal. For such goods, consumers are finally willing to spend during the big end-of-year and holiday sales; and after holding off and saving, shoppers feel they deserve these extras.
The 2011 holidays are sure to be filled with plenty of gift-giving, but this season will also see a surge in extra purchases to make the shopper feel a little extra retail love. In the coming years, it will be interesting to observe if and how such promotions-driven spending will affect the retail marketplace during the rest of the year as well as future holiday seasons.