Holiday shopping is off to a slow start, suggests ShopLocal Index
Consumers may be waiting for the promotions they’ve come to expect before opening their wallets to buy holiday gifts, suggests the latest ShopLocal Index.
The index, which measures consumer traffic to in-store promotions offered on 50 retail web sites, was up 16% in October over the prior year—23% when taking into account that there were five Sundays in October 2006 and only four this year. That suggests a shopping slowdown as the index had been up 29% through August.
The slowdown was most noticeable in consumer electronics, up just 10%, an indication shoppers may be waiting for better deals or that they plan to spend less, ShopLocal says. The home and garden sector was up 75%, likely a result of warmer than usual weather this fall in many parts of the country. Retailers increased their promotions by 12% year to year, according to ShopLocal, which hosts web sites for 50 retailers replicating the offers they make through newspaper circulars.
“There appears to be a push/pull dynamic right now between retailers and consumers, with retailers increasing the number of promotions but shoppers still reticent to buy until they’re sure they are getting the best prices,” says Vikram Sharma, CEO of ShopLocal. “With the potential for a ‘soft’ season, we expect to see increased promotions and heavy discounts on gift items, especially in consumer electronics such as flat-panel TVs, GPS devices and toys.” ShopLocal is owned by three newspaper chains: Gannett Co. Inc., Tribune Company and The McClatchy Company.
A second study puts a positive spin on slow retail sales, suggesting many consumers still have most of their holiday shopping ahead of them. 71.4% of respondents to the survey said they have completed less than one tenth of their holiday shopping, including 76.2% of those aged 18 to 24, according to the survey of 7,982 consumers by BIGResearch on behalf of the National Retail Federation. The survey was conducted between Oct. 31 and Nov. 7.
A third survey sheds light on the gift card buying plans of Hispanics. The survey found Hispanics received gift cards with the highest average value ($71), compared with $41 for whites and $60 for blacks. 38% of Hispanics surveyed said they buy gift cards online, 31% at gift card malls and 6% at charity fundraisers and other events, according to the annual gift card survey by Comdata Stored Value Solutions, a provider of gift card programs to retailers.
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