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Shopping Tsunami Predicted for Weekend before Christmas as Consumers Wait-it-out for Bigger Discounts
Charleston, SC, December 10, 2007... Almost half (48.8%) of American consumers shopped during the third weekend of the Christmas buying season, down from 59% who braved the shops last year, according to this weekend’s national survey on Christmas retail sales conducted by America’s Research Group (ARG), but many consumers waiting for bigger discounts are delaying until the weekend before Christmas to finish their purchases.
"This season turns out to be a waiting game between the retailers and the consumers," said C. Britt Beemer, founder and Chairman of ARG. "The consumers, as always, have the upper hand because they make the purchasing decisions, and retailers will have to work harder to entice them to buy." Beemer predicted in early November that the two biggest shopping periods this season would be Dec. 22 to 24 and Black Friday.
The survey data revealed that 43.6% of shoppers are waiting for 50% off sales to finish their Christmas shopping. Of those consumers not yet finished, 60.7% expect to finish between Dec. 22 and Dec. 24, but only 23.1% say they expect to shop on Christmas Eve.
Consumers are split over whether they are seeing more big discounts this Christmas (34.1%) or less (31.4%), but this was the highest level of "seeing less discounts" in recent years.
The thirst for 50% discounts is such that 20.4% of consumers say they will not buy as much without half-off sales, 14.4% will buy less expensive gifts, and 3.9% will buy gift cards instead. Over sixty percent (61.4%), however, said they would not be affected.
Discount stores are still being favored by consumers with Wal-Mart the big winner, as 41.3% of shoppers visit one of their stores:
| Retailer | 2007 | 2006 |
| Wal-Mart | 41.3% | 39.6% |
| Sears | 18.2% | 16.1% |
| JCPenney | 18.0% | 17.6% |
| Target | 13.6% | 17.4% |
| Best Buy | 12.9% | 15.7% |
The top five gifts purchased so far this year are:
| Gift | 2007 |
| Toys | 34.2% |
| Electronics | 25.6% |
| Gift Cards | 19.4% |
| Video Games | 17.2% |
| Children’s Clothing | 14.8% |
Gift cards see the biggest jump from 12.9% in 2006 to 19.4% this year. When shoppers were asked if they purchased a gift card this year, 57.6% say "yes", compared to 49.4% who had purchased one at this time last year.
On-line shopping is up this year with 46.3% of consumers vs. 41.3% last year.
In a number of ways, consumers are showing their dissatisfaction with the shopping experience, however, not only with discounts, but also with service. One in four (24.5%) said they walked out of a store due to lack of sales help.
Only 39.8% of shoppers purchased something nice tor themselves this holiday season.
More parents have completed children's gift purchases for the season: 44.8% vs. 35.2% last year.
The study consists of 800 interviews conducted Saturday and Sunday, December 8 and 9, 2007, at ARG headquarters in Charleston, SC. The error factor is plus or minus 4.3%. ARG will conduct Christmas retail surveys every weekend until the holiday.
American’s Research Group (ARG) is the consumer–behavior marketing firm that provides clients the insight, strategy and tactics to increase market share. ARG’s expertise in consumer behavior has made it a key resource and advisor to leading brands and top retailers in the nation for 27 years.
Contacts: Britt Beemer, ARG, Tel: 843 345 0939 BBA Communications: Barbara Burns / Eve Edwards
Tel: (212) 486 1140 / (516) 859 3402