Holiday Shoppers Plan to Spend $828 This Year

According to the International Mass Retail Association’s (IMRA) 2000 Holiday Sales survey, holiday 2000 is shaping up to be a good one for most retailers. While acknowledging a general cooling of the economy, IMRA President Robert J. Verdisco nonetheless predicted strong holiday sales for mass retailers, particularly discount department stores and category-dominant retailers.

This year, according to IMRA’s survey, consumers are planning to spend an average of $828 on their holiday shopping, slightly less than last year’s plan. It’s important to note that this dollar figure is just a budget for consumers. Last year, consumers actually spent about 20 percent more on holiday shopping than they planned to, based on the results from IMRA’s 1999 post-holiday study.

Another important trend that continues this year is where people plan to shop. Consumers still plan to do a majority of their shopping at discount department stores and category-dominant stores. Seventy-eight percent say they plan to do their shopping at discount department stores and 53 percent say they plan to shop in category-dominant stores.

One important change over last year is the number of consumers planning to shop on the Internet. According to our 2000 survey, 7 percent of consumers purchased gifts over the Internet last year. This year, 16 percent plan to do so. This number is especially high among 25-34 year olds, with 26 percent of consumers in that age group planning to shop via the Internet.

As in previous years the number one category of merchandise is apparel, with 55 percent of the consumers planning to buy this product, followed by toys, consumer electronics, books and music, and products for the home, like tools, housewares and appliances. The results of this question have varied very little over the five years that IMRA has been asking it.

Verdisco cautioned retail and consumer reporters, however, about using IMRA purchasing data to predict a bumper year for apparel retailers. “Not that we expect apparel sales to be slow this year,” Verdisco said. “We believe apparel sales at certain stores—particularly those specialty stores that have connected with teens—will be very good.

“But it is important to understand that we think consumers tell us that they plan to buy clothing when they haven’t given their holiday shopping lists much thought. Clothing is an easy and safe answer to that question.”

Although more and more people are starting their shopping earlier and spreading it over the holiday season, this year’s survey—like our previous surveys—shows that the majority of people do their shopping in December, with men more inclined than women to delay their shopping until the final weeks.

Every year, we ask consumers how promotions affect their holiday shopping habits. This year’s answer was about the same as previous years: Just under 25 percent wait for sales before buying. For most consumers, sales either have no affect, or they affect WHAT people buy, rather than WHEN they shop. But it shouldn’t be said that promotions aren’t important; they are important, more so for women. However, people are not planning their shopping around sales, nor are they waiting to buy a specific gift until it goes on sale. Instead, the promotion may change their mind over which gift to buy.

“What’s significant about the upcoming holiday season,” Verdisco said, “is that consumers are relatively upbeat. Except for the energy sector, inflation is under control, employment is at an all-time high, and personal incomes continue to increase. All of these are good signs for retailers and make for solid holiday results.”

IMRA’s 2000 Holiday Shopping Survey - October 2000
The complete results of the survey are available from the International Mass Retail Association.

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