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Santa's Feeling Pinched This Year

Consumers say they'll shop later, many will spend less

November 1, 2007

According to a new Consumer Reports Holiday Shopping Poll, nearly one-quarter (23%) of respondents anticipate they will spend less than last year.

CR’s poll also found that the shopping season may get off to a slower start this year. Only 22 percent of consumers anticipate finishing holiday shopping right after Thanksgiving, compared with 30 percent in 2006.

Forty-five percent of those asked said they do not anticipate finishing their shopping until the second week of December, and 20 percent said they would be pushing it right to December 24th. Approximately 6 percent are resigned not to complete their shopping until after the holidays.

“Our findings suggest that consumers are tightening their wallets this year more so than last year,” said Tod Marks, senior editor, Consumer Reports. “The holiday shopping landscape is vast. Consumers need to make well informed decisions on their budget and on their purchases to alleviate the large bills and possibly disappointed gift recipients.”

The poll finds:

Make a List and Check it Twice: Budgets

• If you want to control your spending over the holidays, consider making a budget before you begin to shop. Among the 33 percent of consumers who made a budget for last year, 43 percent managed to stay on budget, with only 8 percent going way over budget.

• Two-thirds of consumers (66%) did not make a budget last year nor do they plan on making one for this year (57%). The most likely candidates for making those budgets are women (47%) and households with young children (53%)

Do You Really Want to Buy That?

• The number one gift consumers are planning to buy for the 2007 holiday season is clothing (71%). That was the category of gifts received in 2006 that triggered the most disappointment among recipients (38%). Fifty percent of men said they were disappointed to receive various types of clothing for the 2006 holidays including socks, sweaters and shirts.

• The number two gift consumers are planning to buy for 2007 is gift cards (62%), followed by electronics (53%)

• This year, the Consumer Reports Holiday Shopping Poll results suggest that gift-givers may want to opt for electronics. The poll found that consumers would most like to receive electronics gifts (19%), followed by gift cards (12%). Men, by far, wanted electronics the most (25%). The top gifts women want are gift cards (15%) and electronics (13%).

• Consumers should look closely at the gifts they receive this holiday – they may have been re-gifted. Nearly one-quarter of those surveyed (24%) admitted to re-gifting a present for the 2006 holidays. The most likely suspects are women (27%). Only 21% of men admitted to ever re-gifting.

The Cyber Consumer

• Online shopping this season will continue to be a well-utilized alternative to going to a traditional brick-and-mortar store. The majority of consumers (65%) plan to do at least some holiday shopping online.

• Men (23%) are more likely than women (13%) to do more of their shopping online this holiday season.

Saying No to Extended Warranties Continues

• When buying home electronics or major appliances, 37 percent of consumers will opt for an extended warranty. This percentage is down 5 percent from 2006 when 42 percent of consumers said they would purchase one.

• Consistent with last year’s findings, shoppers aged 18-34 are more likely to opt for an extended warranty (69%) than others. Thirty-six percent of consumers aged 35-54 said they would purchase an extended warranty, while only 27% of those 55 and older said they would do so.

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