Recession-conscious consumers are looking to spend less and save more this holiday season, according to a summer 2009 survey conducted by Harris Interactive on behalf of ING DIRECT.
About one-half of US adults (54%) said they planned to spend at least $300 on holiday gift-giving this year. In November 2008, 60% of respondents reported their typical holiday spending was in that range.
Just over one-third (34%) of US adults planned to spend less than $300 on holiday gift-giving this year. In November 2008, 32% of respondents said their typical holiday spending was between $1 and $300.
There was a 2-percentage-point decrease in the number of respondents planning to spend more than $1,000 on holiday gifts. There was also a 4-percentage-point increase in the number planning to spend nothing at all, with 11% of US adults planning on keeping their pocketbooks closed this holiday season.
Instead of spending on presents, respondents want to save, with 41% reporting their top priorities are to spend less and save more for the rest of 2009. Americans were looking to build up an emergency fund (37%), pay down debt (35%) and save for retirement (34%). More than two-thirds of respondents claimed they will continue with their frugal ways even after the recession.
“Gift givers will still visit the malls and shop online this holiday season, but it appears they’ll think twice before reaching into their wallets again and again,” said Arkadi Kuhlmann, president of ING DIRECT USA. “This year, Americans are putting a higher priority on saving than shopping.”
Other recent studies bear this out. In a survey by Kelton Research commissioned by Sears and Kmart, 57% of Internet users planned to spend less on gifts this holiday season, and 58% were more concerned about how they would pay for holiday spending this year than last year. And Hitwise reported increases in searches with the term “layaway” in late summer, signaling a possible resurgence of such programs this holiday season.
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Check out today’s other article, “The Price of a Marketing Lead.”