December 23, 2009
Over half of American consumers (50.4 percent) who haven't yet finished their Christmas shopping say that lack of discounts of 60 percent to 70 percent off have had a negative effect on their shopping experience this year.
According to the latest Christmas Retail Survey by America's Research Group (ARG) and UBS, lack of big discounts had a major effect on 22.2 percent of consumers versus 13.7 percent last year.
"Consumers have a long memory and want those substantial discounts they found last year," says C. Britt Beemer CEO and founder of ARG.
"Meanwhile electronics have dominated the Christmas selling season, going ahead of toys for the first time since the early 80's when VCR's exceeded toys one year," he added. Beemer says the price of flat-panel TV sets is so low that they are now a mass product demand item at $499 and below.
Wal-Mart increased its dominance of the important Christmas shopping season, with 83.9 percent of consumers saying they shopped there this year, compared with 77.9 percent last year. The survey also identified retail winners and losers for Christmas 2009 judged by how well they did in retaining customers during the holiday shopping season.
Because of the recent fierce winter storm over almost half the country and lack of big discounts, 41.9 percent of consumers still have shopping to do, versus 21.5 percent last year. Only 58.1 percent of consumers have finished or nearly finished buying their gifts, compared with 78.5 percent last year.
The winter storm didn't help on-line shopping, however, and it remains flat with 42.9 percent of consumers shopping on-line this year, as opposed to 41.9 percent last year.
Top gifts Electronics topped the gift lists of 34.4 percent of consumers this year. Toys came in second with 28.4 percent, then children's clothes at 18.5 percent, women's clothes at 15.5 percent and men's clothes at 15.2 percent.
Top stores shopped this weekend Wal-Mart was far ahead of others this weekend, with 55.6 percent of consumers saying they shopped there. Others were Sears (22.1 percent), Target (18.4 percent) Best Buy (11.7 percent) and Kmart (11.6 percent).
Top gifts at Wal-Mart this weekend Toys (38.6 percent), electronics (27.6 percent), DVD's (19.6 percent), and video games (16.5 percent).
Retail Winners and Losers for Christmas 2009 are judged in the survey by their ability to get their customers to return during the holiday shopping season.
The Winners Wal-Mart did an outstanding job with 93.0 percent of their customers returning to shop at the store this Christmas. Others in the winners category are Ross (87.7 percent), Kmart (86.2 percent), Sears (86.0 percent), Big Lots (83.7 percent), Target (83.5 percent), JCPenney (82.4 percent), Sam's Club (81.9 percent), TJ Maxx (80.9 percent).
The Losers Only four major retailers were unable to get half of their customers to return. Office Max did the poorest job in getting only 46.1 percent of customers to return during the Christmas shopping season. Others in the losers lists are Saks (46.4 percent), Office Depot (46.5 percent), Home Depot (47.3 percent).
