2009 Holiday Shopping Trends

As expected, consumers are tightening their budgets and looking hard for good deals

Though 2009 wasn’t the financial nightmare that many predicted it would be, there’s no denying that it hasn’t exactly been a pleasant night’s sleep, either. And while many pundits predict it’s nearing an end, the recession has changed the consumer landscape and forced shoppers to totally rethink the way they shop; how much they spend, where and when they spend, and, most importantly, why they spend.

Careful consumer spending will be in full effect going forward, and the 2009 holidays will likely be no exception to the “new normal” of consumer caution. Here are some of the trends being reported among shopping-savvy consumers this holiday season…

Consumer caution
While holiday shopping is happening, it’s being done with the same caution that shoppers have been exercising for several months now. In fact, according to a National Retail Federation survey, 84.2% of people interviewed said they’d spend less on holiday gifts than they did last year.

Also, changes in the economy have made consumers think twice about doing all of their shopping at big-name chain stores. Now they’re considering other sources, such as discounters, thrift stores and resale shops. The NRF reports that 70% of people surveyed were planning to shop at discounters, and that at least one in ten people would shop at thrift stores this holiday season.

Savings, savings, savings
It’s probably no surprise that in this era where everyone’s looking to cut back on spending, consumers are eagerly searching for the best possible deals that they can find. Coupons, discounts, free shipping and just about anything else that can shave a few bucks are highly desired by holiday shoppers. The NRF survey reports that nearly half (43.3%) of respondents chose sales or price discounts as the most important factor in deciding where they shopped this holiday season.

Additionally, the era of “grab it and go” appears to be over. Consumers are researching their purchases before they buy them, both to determine if they really need them, and to try to find the best possible deals. Product reviews, message boards and online videos are great resources for careful consumers, and in 2009 holiday shoppers are using those resources more than ever.

Impulse spending way down
Retailers hoping that consumers will make a lot of “oh, what the heck” purchases for themselves or others may want to give up that hope. All signs indicate that tightening belts will lead to a consumer crackdown on impulse purchases. Shoppers are going to be setting their budgets—and sticking to them.

While projected holiday spending for 2009 is down across most categories, it’s actually up when it comes to food and candy. According to the NRF’s survey, food spending will be up an average of $10 per person, which is the only expected increase in any category this holiday season. Whether people are buying food gifts for friends or just planning more parties at home, it looks like there will be more than enough to go around.

While most categories will suffer from spending declines, some will take less of a hit than others. For example, Americans say they’ll spend only 2% less on greeting cards this year. Since spending is expected to decline for friends and co-workers, this may mean that some people are getting a simple card instead of a gift this year. But hey, it’s the thought that counts, right?

— Noah Belson, Content Quality Analyst