News

Visa survey: 77% of Americans haven’t finished shopping

BY Marianne Wilson

SAN FRANCISCO — A new survey conducted by Visa revealed that 77% of consumers still need to buy holiday gifts this week. These last-minute shoppers will spend an average of $278 in the final days leading up to Christmas and Hanukkah.

Procrastination is running rampant this year, with 13% of consumers planning to purchase all of their gifts in this final week. The survey data also showed that 8% of shoppers will purchase three quarters of their gifts this week, while 16% will purchase half of the gifts on their list this week. And 51% of consumers said they will be purchasing a quarter of their gifts this week.

"With this many Americans still desperate to buy gifts, we are officially in the red zone for ‘panic shopping’," said Jason Alderman, Visa’s senior director of global financial education. "When shoppers panic, they throw money at the problem and often overspend to get a gift — any gift — in time for the holidays."

With six days until Christmas, the U.S. holiday shopping season is better than expected, with discounts deep enough to bring in shoppers who are searching for bargains but not showing the desperation seen in the recession.

Customer Growth Partners, which has been one of the most bullish forecasters of sales heading into the holiday season, estimated that U.S. retailer sales on Saturday were $26 billion, just shy of the $27 billion spent on "Black Friday," the day after Thanksgiving, which traditionally kicks off the holiday shopping season.

ShopperTrak, which monitors traffic at shopping malls, now expects sales in November and December to rise 3.7 percent, up from its September forecast of 3%.

Last week, the National Retail Federation raised its forecast, calling for holiday sales to rise 3.8%. In October, it forecast a gain of 2.8%.

To be sure, that NRF forecast is still less than the 5.2% increase reported for 2010. Unemployment was still 8.6% in November and lower-income shoppers have been making use of such plans as layaway to paying for holiday items.

So many analysts said sales are not exceptionally strong or exceptionally weak.

"There’s more that’s normal here than people want to let on," Edward Jones analyst Matt Arnold said.

ShopperTrak cofounder Bill Martin said that discounts were more in the 30% to 40% range, instead of the 50% to 60% seen last year.

On Saturday, he said it was hard to find parking spaces at the malls he visited and he saw lots of people with packages. In other words, it was a typical weekend before Christmas.

"It’s been a typical shopping pattern," he said.

Overall, traffic to stores may be off a couple of percentage points. But that’s because more people are shopping on line, he said.

IBM Benchmark, which tracks transactions on the websites of hundreds of the top retailers, said on Monday it now expects online sales to rise 9.5% to 10% in December from a year ago.

Trutina Financial chief investment officer Patty Edwards said what she saw at Target this weekend was stocked shelves and normal discounts.

"There weren’t any specific markdowns that were overly compelling, but conversely, there didn’t seem to be any shortages of items at all," Edwards said.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
News

Online holiday spending continues at 15% growth clip

BY Katherine Field Boccaccio

RESTON, Va. — Following recent e-commerce trends released by ComScore, online spending continues to grow at a consistent 15% rate. As reported earlier, holiday e-commerce spending rose 15% year over year to $26.8 billion for the first 42 days of the shopping season, through Dec. 12.

And on Sunday, ComScore released its latest findings, that online sales surpassed $1 billion on four days during the work week of Dec.12 to 16, a 15% increase over the same period last year.

"Free shipping is undoubtedly one of the most important incentives for consumers and has become a key driver of online buying activity over the past few years," ComScore chairman Gian Fulgoni said.

Over the holiday shopping season to date, consumers have spent $30.9 billion toward online purchases during the current holiday season. ComScore also said, however, that spending has reached a crescendo for this season and will begin to slow as Christmas nears.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
News

Lego Friends brings construction toy experience to girls

BY Allison Cerra

BILLUND, Denmark — Lego has introduced a new line of construction toys that caters to girls ages 5 years and older.

Lego Friends, the company said, is a collection that will consist of 23 products that tailor the Lego construction experience to the demographic, the company said. The sets now will roll out through summer 2012.

"We felt it was time to test assumptions that girls aren’t interested in building and to breathe fresh air into a toy category filled mostly with pre-fabricated play experiences for girls," Lego CEO Jorgen Vig Knudstorp said. "We focused on creating a play experience centered on the joy of creation, while heeding the way girls naturally build and play. We are incredibly proud of the solution we deliver with Lego Friends, and are resolved to build this platform for years to come."

The Lego Friends collection ranges in price from $5.99 to $99.99.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?