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You're the reason retailers begin holiday sales so early

Published November 5th, 2009 | 2 Comments

If it seems like the winter holiday season is starting earlier than before, it’s not your imagination. The phenomenon known as “Christmas creep” has become a condition of retail life in an increasingly competitive marketplace.

But market research shows a lot of the blame for the accelerated countdown to Christmas is directly attributable to shoppers themselves, who loudly complain even as they head to the cash register with their purchases.

Although it’s common to hear laments about stores featuring Christmas decorating schemes before Halloween, several national surveys show that nearly four out of 10 consumers have already begun their holiday buying.

Little wonder, then, that more and more retailers are beginning their holiday promotions earlier than before. After all, for many retailers, the holiday season represents between 20 percent to 30 percent of annual sales, so having those items consumers want, when they want them, can really make a difference to a store’s bottom line.

According to the National Retail Federation’s 2009 Holiday Consumer Intentions and Actions Survey, U.S. consumers plan to spend an average of $682.74 on holiday-related shopping this season. That represents a slight drop from last year’s $705.01. Overall, says the NRF, aggregate holiday spending is expected to decline by approximately 1 percent compared to last year. Even with the expected decline, holiday sales are expected to ring in at a still staggering $437.6 billion.

In anticipation of that somewhat weaker consumer demand, says NRF President and CEO Tracy Mullin, “Many retailers scaled back on inventory levels to prevent unplanned markdowns at the end of the season.”

As a consequence, says Mullin, “Once the most popular items are gone, retailers won’t have anywhere to get them, so if there was ever a holiday season to buy early, this is it.”

Given that so many shoppers have already begun to make their holiday purchases, Mullin’s advice to consumers would seem to be right on the mark.

According to the NRF survey, the majority of holiday shoppers (70.1 percent) will purchase from discounters this year, though more than half (55.8 percent) will also shop at department stores. Grocery stores (45 percent), the Internet (42.4 percent), clothing stores (33.8 percent) and electronics stores (31.8 percent) will also be popular destinations. In addition, slightly more than one in ten holiday shoppers (11.4 percent) will buy gifts or other holiday-related merchandise at thrift stores or resale shops.

But in the main, Americans’ spending habits are expected to remain much as they have in previous years. The NRF survey finds that approximately 75 percent of consumers will spend more or less the same on gifts for family members this year as last year. It’s “other” gifts — such as those for babysitters, teachers and the clergy that consumers say they plan to reduce by an average of 5 percent.

At the same time, spending on candy and food is estimated to actually increase substantially, from $80.28 in 2008 to $90.26 this season.

Perhaps all those babysitters, teachers and clergy NRF says we plan to spend less on this year will be compensated with a batch of home-baked cookies or an invitation to a nice holiday meal.

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People in many countries celebrate Christmas without an orgy of over consuming and spending beyond their means. Perhaps we need to become more like them.

Joe Allison | 11/9/2009 - 1:44 PM - ( Comment

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And you wonder why there's so much debt around.

Joe Lawson | 11/6/2009 - 7:48 AM - ( Comment

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