State of Economy Elicits Caution
While vacationing with my family during the past week, the subject of holiday spending plans came up. For the first time ever, everyone agreed that this year we should just exchange names for gift-giving, and buy for one person only.
When I returned to work and read the latest National Retail Federation holiday spending survey conducted by Prosper Insights & Analytics, I was not surprised that this survey predicts that the average holiday shopper will spend $737.95 this year, down 2% from last year’s $752.24.
The overall state of the economy appears to be the most significant reason why consumers are “tightening their belts” this holiday season. Uncertainty about a long-term solution for funding the government may be a reason for using caution.
How will consumers make room in their budgets for the holiday season this year? Below are some of the ways that surfaced in the survey.
- · Shoppers will cut back on “Self-Giving” – not buying for themselves just because it’s a good deal..
- · Shopping early – spreading out their purchases over time, avoiding last-minute purchases and crowds.
- · Shopping online – to get the best value for their money.
- · Using smartphones and tablets – to help find bargain holiday purchases.
- · Using gift cards – 6 in 10 holiday shoppers would most like to receive gift cards.
- · Using sales and discounts, free shipping deals and promotions – to get the most for the money spent.
Is your business prepared to reel in your share of the holiday profits? Having a good POS system like NRC’s Counterpoint will help you, with features like CustomerConnect to help you stay connected to your customer base for sales and discount promotions. Counterpoint also has the capability of providing for gift card purchases.
We are here to answer your questions at 800/425-672-4806 or you can email us. Prepare now for a profitable holiday season!