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Holiday Shoppers Off to a Slow Start

Pace expected to pick up on Black Friday

November 21, 2007 

Nearly a quarter (24%) of consumers plan to hit the stores on Black Friday – compared with the 20 percent that shopped on the day in 2006.

According to the poll, only 38 percent of consumers have started their holiday shopping this year; 43 percent had begun this time last year.

Women are expected to lead the charge on Black Friday: 27 percent believe it will be a big shopping day, but they also know they will be shouldering much of the burden throughout the season.

Among married couples, 72 percent of women claimed they had completed three-quarters or more of the household’s holiday shopping last year. By comparison, only 11 percent of the men claimed to be this heavily engaged in gift shopping.

Black Friday is known for crowds, lines and sales, and this year will be no different.

Consumers are expected to wait for those early morning store openings and take advantage of special sales. Fourteen percent of adults reported that they waited in line for early morning store openings last year, and CR anticipates a similar (12%) early bird turnout this year.

Consumer Reports found that shopper’s number one gift to buy on Black Friday will be clothing (79%), followed by electronics (70%). Ironically, a poll earlier this season suggested clothing was the most disappointing gift (38%) among recipients in 2006. Other popular gifts consumers are planning to purchase include: toys (64%), gift cards (58%), and jewelry (40%).

“Black Friday continues to be a busy shopping day and will be an even bigger retail day than it was in 2006,” said Tod Marks, senior editor, Consumer Reports. “This holiday season needs all the help it can get -- shoppers have been off slow to start so far this year, but retailers can rest assure that shoppers will be waiting when the doors open on Friday.”

Clock is ticking

This season adults will spend 10 hours on average shopping for the holidays. Women will devote the most time (38%) about 10 or more hours shopping versus only 23 percent of men making this level of commitment.

Online shopping will continue to play an important role: More than two-fifths (42%) of adults will shop online this year for the holidays versus 40 percent who claimed to have shopped online last year.

Women made strides in the virtual world, with 41 percent saying they will shop online this year compared with the 37 percent last year, while usage among men has remained relatively flat.

The primary reason for shopping online continues to be convenience (48%) followed by avoiding holiday crowds (17%), better selection (12%), and better prices (11%).

But Consumer Reports discovered time is not always of the essence when browsing online. Those with Internet access from home will spend about 11 hours shopping for the holidays -- approximately the same amount of time as the general public.

Once shopping is done, online or in store, consumers cannot forget gift wrapping. On average consumers will spend two hours wrapping gifts. Women, as expected, devote more time to wrapping than men. Nearly half (49%) will spend 3 hours or more wrapping gifts, compared with only 17 percent of men.

TVs get big and bigger

The big gifts again this year are flat-panel televisions, both LCD and plasma. Nearly two in 10 consumers (17%) plan to by a flat-panel TV as a gift or after the holidays. LCD sales (54%) still lead plasma screen sales (29%), although 16 percent of consumers don’t know what type they will finally select.

Regardless of the screen type, the screens will be large: 47 percent are planning on 42” or larger and 15 percent are eyeing sets 50” or bigger.

Interest in purchasing big flat-panel TV’s is no longer just a guy thing. Although for different reasons, women are being enticed by the big screen. Among married couples men are buying for a better picture (44%) while woman are attracted to freeing up some floor space (27%).

Last year more than half of men (54%) were more interested in screens 42” or larger than woman (36%); but this year both nearly half of both men (49%) and woman (45%) are interested in similar screen sizes.

Price is a big reason why consumers are looking to purchase a flat-screen TV. Last year, Consumer Reports found that more than one-third of consumers (35%) were planning to spend $1,500 or more on their flat-panels; but this year that percentage fell to less than one-quarter (24%).

The average amount that consumers will spend has fallen from $1,600 in 2006 to about $1,300 this year. Men still plan to spend more, but only $110 more than women on average; in 2006 the price spread between genders was $240.

Still a thorn

Based on CR’s October holiday poll, the number of consumers (37%) who opted to buy extended warranty coverage on home electronics or major appliances decreased five percent from last year (42%).

Despite this decline in extended warranty purchases, consumers continue to be solicited by the sales team. Nearly six in 10 respondents (58%) told Consumer Reports that they felt salespeople try to pressure them into buying an extended warranty when purchasing home electronics or appliances.

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