More than a third of United States consumers are already done with most of their holiday shopping, a Reuters survey found, signaling that retailers need to offer big incentives to win sales in the last weeks before Christmas. Findings of the Reuters report “underscore the fragility of the U.S. recovery, since consumer spending accounts for about 70 percent of the nation’s economy,” the news service says.
Approximately 32 percent of people surveyed said they finished a majority of their Christmas shopping in November, the month that includes Black Friday. More than 6 percent completed most of their holiday shopping the first weekend in December.
Around 28 percent of those surveyed said they plan to take a break from shopping, now that Black Friday weekend is behind them.
“Many, many consumers, when they got those early bird specials on Black Friday, decided that that was going to be the big purchase for their family,” Britt Beemer, president of America’s Research Group, the company who conducted the Reuters survey, said. She added that many shoppers spent more than they had planned on Black Friday.
The National Retail Federation (NRF) reported that sales over the Black Friday weekend soared to $52.4 billion, a 2.8 percent increased from 2010.
Businesses, however, may not see the same feverish spending occurring in the next few weeks.
“There is very little retailers can do unless they really have some incredible sales that force that consumer to reconsider if they want … to make an extra purchase now,” Beemer said.
Reuters’ survey also highlighted grievances of the post-recession U.S. consumer. More than 43 percent of those surveyed said they expect the debt crisis in Europe to hurt the U.S., while 36 percent said political gridlock in Washington was the biggest problem facing the economy.
Approximately 27 percent of those surveyed worry about the rising cost of living, while a quarter see unemployment as the key issue faced by the U.S. economy.
Many shoppers said discount chains would be their destination of choice to finish their holiday shopping, with nearly 38 percent of holiday shoppers planning to visit one, showing that consumers remain highly price-sensitive.
“You have got to give them a deal that is incredible,” Beemer said, suggesting retailers slash prices and offer deep discounts of 50 and 60 percent off to lure in shoppers.
Department stores offering unique merchandise will also continue to see shoppers, as 30 percent plan to visit one during the rest of the season.
Reuters’ survey of 1,000 people was conducted Dec. 3-4 via telephone as part of a larger survey by America’s Research Group.
-National Jeweler
