Report: Households to Curb Holiday Spending
New York City U.S. households are expected to spend an average of $418 on gifts during the holiday season, down from last year’s estimate of $471, according to a report by The Conference Board.
The report also found that top holiday spenders would be East North Central households, such as those in Illinois, Indiana, Michigan, Ohio and Wisconsin, who intend to spend an average of $550.
The lowest holiday spending will be in the West South Central region, including Arkansas, Louisiana, Oklahoma and Texas, where consumers intend to spend an average of $330 on Christmas gifts.
Only 27% of all households intend to spend $500 or more on Christmas gifts, down from 33% last year. Thirty-seven percent plan to spend $200-$500, and 35% are planning to spend less than $200.
In addition, about 39% of all consumers are expected to buy holiday gifts on the Internet, the report said. Books top the list of online holiday buying, with 38% saying they will buy books as gifts. Toys and games came in second with 36% of consumers intending to purchase these gifts online. Apparel and footwear rank third as online Christmas buying choices, followed by movie videos and DVDs.
Of the 41% who said they purchased holiday gifts last year on the Internet, 94% said they were satisfied with their online-buying experience.
Households headed by individuals 65 and over intend to spend the most this season, with a $469 average spending budget, the report found. Households headed by those aged 35-44 intend to spend $419 on gifts, while those with an income over $50,000 intend to spend $551 for holiday gifts.
Barnes & Noble posts 3Q loss, lowers outlook
NEW YORK Barnes & Noble reported sales for the third quarter of $1.1 billion, a 4.4% decrease compared to the prior year. Barnes & Noble store sales decreased 4.4% to $971 million, with comparable-store sales decreasing 7.4% for the quarter.
The third quarter net loss was $18.4 million or 34 cents per share.
“A significant drop off in customer traffic and consumer spending impacted our business in the third quarter,” said Steve Riggio, ceo of Barnes & Noble. “In a challenging environment with a comparable-store sales decline of 4.6% this year, the company has aggressively managed expenses to operate profitably. Furthermore, the company is taking measures to reduce expenses for the balance of this year and next.”
For the fourth quarter, the company expects comparable-store sales at Barnes & Noble stores to decline 6% to 9%. Fourth quarter earnings per share is expected to be in a range of $1.40 to $1.70. For the full year, the company now expects comparable-store sales at Barnes & Noble stores to decline 5% to 6%. Full year earnings per share is expected to be in a range of $1.30 to $1.60, compared to previous guidance of $1.70 to $1.90.
Dollar General pushes back Thanksgiving sales
GOODLETTSVILLE, Tenn. Dollar General announced that it will offer holiday deals a full weak ahead of the traditional Thanksgiving holiday shopping weekend.
Starting the Sunday before Thanksgiving, customers will find special savings on items such as DVD players, holiday decorations and gaming systems.
Promotions will continue during the Thanksgiving weekend with deals on cell phones, jeans and MP3 players.