NRF: Shoppers cutting budgets this holiday season
Washington, D.C. – Consumers will take a conservative approach to spending this holiday season. According to NRF’s holiday consumer spending survey conducted by Prosper Insights & Analytics, the average holiday shopper will spend $737.95 on gifts, décor, greeting cards and more, 2% less than the $752.24 they actually spent last year.
For the first time, NRF asked holiday shoppers if the political gridlock in Washington around U.S. fiscal concerns would affect their holiday spending plans. On average, 29% of respondents said the situation would somewhat or very likely affect their spending plans. Nearly one-third (32.7%) of those between the ages of 55 and 64 said political gridlock in Washington was somewhat or very likely to affect their spending, the highest percent among all age groups surveyed.
When asked specifically about the overall state of the economy and how it would affect their spending plans, more than half (51%) of consumers said the economy would in some way impact how they spend this holiday season. Specifically, 79.5% plan to spend less overall, looking to cut corners and tighten budgets where they can.
Other noteworthy results include:
- 57% of shoppers will buy gifts for themselves, down from 59% last year.
- Total spending on holiday décor will reach $6.8 billion.
- Four-in-10 Americans will begin shopping before Halloween.
- More than half of consumers (51.5%) will shop online, with the average person completing 39.5% of holiday shopping online, up from 38.8% last year.
- Online holiday sales will grow 13%-15% to as high as $82 billion.
- 53.8% of smartphone owners and 63.2% of tablet owners will use their devices to make purchases, comparison shop and look up prices.
- Six-in-10 Americans say they’d most like to receive gift cards.
- 35.6% of respondents said the most important factor in deciding where to shop are offers for sales and discounts, along with 16.4% who say the most important factor is selection of merchandise and 13.6% who say it’s quality of merchandise. Three-percent (3.4%) rate free shipping or shipping promotions as the most important factor, up from 2.9% last year.
Report: Gap selects new Australian franchisee
San Francisco – Gap Inc. has reportedly signed a non-binding agreement for Australia-based Oroton Group to take control of its franchise operation in Australia, New Zealand, and some Pacific islands. According to the Wall Street Journal, Oroton Group will start running Gap’s three franchise stores in Australia in November 2013 and purchase some inventory and store fixtures from current Gap franchisee Brand Republic Pty Ltd.
Brand Republic has been Gap’s Australian franchisee since 2010 and had planned to open 10-15 Gap stores by 2014. Oroton Group also recently signed a 10-year Australian franchise agreement with Brooks Brothers and had a license to distribute Ralph Lauren apparel in Australia and New Zealand expire in June 2013.
Mall traffic impacts Wet Seal forecast
Foothill Ranch, Calif. – The Wet Seal Inc. revising its financial guidance for the third quarter of fiscal 2013 ending November 2, 2013. The company now expects to report a same-store sales increase in the low-single digits, compared to previously forecast mid-single digits, as well as a larger net loss than previously estimated.
“Following our strong start to the quarter, mall traffic softened considerably during September and has continued into October, resulting in an increasingly promotional competitive environment in recent weeks,” said John D. Goodman, CEO of Wet Seal. “We expect to deliver improvement in most key financial metrics versus the year ago period, but the need to implement more extensive promotions than planned has caused us to lower our margin and earnings expectations for the quarter.”
The company will report third quarter fiscal 2013 sales on Nov. 7, 2013, and expects to report full financial results and hold its quarterly earnings conference call on Nov. 25, 2013.