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This blog will look at the winners and losers in the retail space. Who has the right strategy to capture consumer dollars? It also will look for trends in consumer spending and how that will impact the economy.
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Looks like folks will be making a budget, and checking it twice this holiday season as lavish gifts fall out of fashion, either by necessity or design.
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According to a National Retail Federation survey, U.S. consumers plan to spend an average of $832.36 on holiday-related shopping, up 1.9 percent from last year's $816.69. This is the lowest year-over-year increase since the survey began in 2002.
We put this question to our readers, and the vast majority of our readers said yes, they would spend less this year. Here's what else they had to say:
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Yes. THE economy has most definitely put a damper on my holiday spending plans. That said, my own economic benchmark/wealth status remains unchanged and slightly to the plus-side. However, as I look around, it is quite evident that most of the people I know, business and personal, are in a different situation than I. Instead of spending money on 'WANTS', I will spend on 'NEEDS'. Additionally, my family and I have decided that the difference between what we spend this year from last year, will be spent on charitable causes. I do not expect to save or 'squirrel away' monies not spent. I intend to actually spend/use this money in a more responsible manner.
- Bruce, New York, N.Y.
Due to my partner being laid off for six weeks, my Christmas budget has been lowered dramatically.
- Virginia, Henrico, Va.
My family and friends have agreed on several changes to this year's holiday season. From no gift packages for distant family, just cards, to only using the on-sale wrapping paper we bought on Dec. 26th last year. Locally, friends have all agreed to a pot luck dinner and "favor" cards as gifts (such as free babysitting night, house cleaning, car washes, snow removal). Any "white elephant" or "regifts" from last year will be brought to our party for exchange games, with newly bought items not being allowed. We just want to have fun and enjoy each other's company. These past few months have made us all think it's been too much all about money.
- Matthew, State College, Pa.
The gift-giving theme for this holiday season will be: "It's the thought that counts."
- Milan, Baltimore, Md.
Yes, of course, the economy is making me think twice about spending money this holiday season. There will be less eating out and spending carelessly. How do you think this mess started? Everyone trying to out-do one another. Bigger houses. Fancy cars. Need I say more!
- Donna, Hicksville, N.Y.
I think the media of the world is really messing up our economy more than anything else. I live in a town of about 2,000, and yes, gas prices were up, but that is not the end all be all. People still have jobs, and in an area where people are smarter than putting all of their eggs in one basket (the stock market), they are doing just fine. The spending should be about the same, but it is the people who are getting in trouble with debt, in a good or bad market and economy, that are going to be hurt more. The government doesn't set a good example by putting our country trillions of dollars in debt. No wonder our national savings rate is negative 1%. Someone has to get some brains and brass and do something about this. I don't think anyone has the backbone on Capitol Hill.
- Brian, Wautoma, Wisc.
We have always spent less than we make and saved regularly. We have also donated regularly, put our kids through school and lived modestly. We never go overboard on holiday spending and pay off cards each month. So we will be doing the same this year. Retailers may not love us, but we sleep very well at night.
- Mark, Charleston, S.C.
We're planning on spending for larger ticket items that are priced at a discount - a Mercedes for example - the prices and incentives are too good to pass up. If you have the means, it's a GREAT time to bargain hunt.
-Michael, Fort Myers, Fla.
I have prepared myself and my family that in the current environment, unless we're "eating it" or "putting it in the gas tank", it's not going to be purchased. Preservation of cash going into the 4th quarter (especially in the mortgage industry) is going to be essential...so, we will be REALLY cutting back on Christmas spending.
- Joel, Chandler, Ariz.
I think all this wailing and wringing of hands by the media and every economist who has a blog, a TV spot, or a book is disgusting. It's driving the markets and the attitudes of consumers down even lower. You keep telling everyone there is a recession or that it's going to be a BLUE, BLUE Christmas and people will follow suit. Have some responsibility and shut yer pie holes once in a while. In fact keep them shut more than they were shut since the Great Depression. Sheesh. We're sick of this. Thanks for letting me vent. I shall now shut my pie hole.
-E., New Ulm, Minn.
I normally spend between seven and ten thousand dollars for holiday gifts, including gifts for clients. This year, I am not giving any gifts at all. Instead, I will donate money to a few, select charities like God's Love We Deliver here in New York and The Salvation Army. It just does not seem like a good idea to send lavish gifts this year.
- Richard, New York, N.Y.
Christmas this year will not be wishes whispered in secret into Santa's ear, but instead, practical items or $25 or less. Ho Ho Ho Everyone! Hoe?? Yes, another good practical item! Good Luck and Happy Holidays all!
-Linda, Rock Cave, W.V.
I think that for the first time in recent memory there will be a large sizable and measureable decline in consumer spending this holiday season. Money is no longer available to borrow cheaply and there is a unignorable worry that is gripping people from Main Street to Wall Street. I will be spending much less this year during the holiday season. Not because I am worried about loosing my job, but more because I'm worried about the future ways my money will be able to work for me in traditional investments such as the stock market.
-Christopher, Pittsburgh, Pa.
With five kids to buy for in my house alone, we will be cutting out buying for our friends and family this year. I have already noticed the increase of prices for things at the grocery store. We plan to start making cuts everywhere with our spending and bills.
-Elizabeth, Easton, Pa.
HOW CAN WE BE EXPECTED TO SPEND MONEY WHEN WE CAN'T PAY OUR BILLS? THE PRICE OF GAS TAKES ANY EXTRA MONEY THAT MIGHT BE ABLE TO BE USED FOR CHRISTMAS.
-Jami, Streeter, N.D.
Helping those who are suffering and struggling to feed their families and keep their homes does seem like a better thing to do with our money ...than buy gifts most of us don't need.
-Billie, Vestal, N.Y.
Has the economic slowdown affected your plans for holiday spending this year? Write to us: |
AP |
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Questions? Comments?
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- Vote and suggest your own, and remember--there's a fine line between a hero and a zero.
Data is a real-time snapshot *Data is delayed at least 15 minutes