Holiday Office Parties Expected to Be Lamer Than Usual - Holiday Central

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It's a make-it or break it time for retailers. The holiday selling season is always a critical time for retailers, but this year this may be even more true. With several retailers already falling victim to a drop in consumer spending, and filing for bankruptcy, retailers will be navigating through some tricky waters. Consumers are strapped for cash due to high energy and food prices, and unemployment is rising. The recent credit crunch has made it more challenging for retailers and consumers to borrow.

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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Oct.29

4:24 PM ET

Wednesday, 29 Oct 2008

Holiday Office Parties Expected to Be Lamer Than Usual

Posted By:Lesley Sideck

Topics:Holiday Central | Media | Retail Sales

Sectors:Media | Retail

For those who are fortunate enough to work for an employer throwing a holiday shindig, don’t expect a big blowout like last year.

Decorated Office
Keo The Younger
Office parties this year will look more like the Peanuts Christmas tree than the one at Rockefeller Center.

If you enjoyed a live band, don’t be surprised by a DJ this year. If you got a little too tipsy, have no fear of a repeat performance — many open bars will now be coming with time limits, or done away with completely.

You might even be able to cancel the babysitter as many of this year’s parties will be occurring during the workday or will be for employees only.

Companies are slashing the budget for the holiday soiree, or doing away with the event all together.

Mario Stewart, founder and co-owner of EMRG Media, a New York City event planning and marketing firm says he has definitely noticed a difference from 2007. There have not been many outright cancellations, but party budgets have been significantly reduced, especially among his clients in the financial sector.

The number of companies planning to hold holiday parties this year dropped to 77 percent from 90 percent in 2007, according to a survey by outplacement-services firm Challenger, Gray and Christmas.

Of those celebrating, 13 percent said they've trimmed their budgets by an average of 53 percent, and 65 percent have limited their parties to employees only.

Stewart said he's noticed that venues are now more willing to negotiate the per-person rate for a holiday party in an attempt to accommodate tight budgets and keep the business.

“Even companies spending the same as last year will have to settle for less extravagant parties, thanks to higher costs for food, alcohol, and venues," said John Challenger, CEO of Challenger, Gray and Christmas.

Still, Challenger said, " many companies will find that holding a more low-key or low-budget party is better than canceling the party entirely. These year-end celebrations are an effective way of boosting employee morale — especially in tough economic times."

— Lesley Sideck

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