Five Kelley Blue Book favorite holiday deals. The Honda and Acura offers end 1/4/11; others expire on 1/3/11.
* 2011 Ford Fusion: 0%, 60-month financing
* 2011 Acura TSX: 0% financing for 24 to 60 months
* 2011 Mercedes-Benz C300: $339 per month, $3,379 due at signing
* 2011 Mazda3 s Sport: Lease for $229/month, $0 due at signing
* 2011 Honda Odyssey: Lease for $360/month, $0 due at signing
Monday, December 27, 2010
Car dealerships usually full of buyers in last week of year
By Jayne O'Donnell, USA TODAY
Car dealers are bracing for one of their biggest sales periods of the year this week as many consumers shift their attention from what's under the tree to what's in their garage.
Many dealers do up to 70% of their December business in the week after Christmas, says James O'Sullivan, CEO of Mazda North America. Some don't even bother to advertise much until right before Christmas, recognizing that it would be hard to get most consumers' attention, O'Sullivan says.
CARS.COM: Find the latest car deals
"December is not the biggest selling month of the year," says O'Sullivan, but Dec. 26 to Jan. 1 is the "most intense selling week of the year."
Several factors make the post-Christmas/pre-New Year's period a bountiful one for the car business. Some, including big stock market gains, make it likely this year will be busier than usual. Most important, many people are off work and kids are home from college, so there's time for families to shop.
"In the car business, weekends are our big volume days," says Shaun Del Grande, whose San Jose-based dealership chain sells brands including Honda, Toyota, Subaru and Mazda. This week, "Every day is like a weekend."
There's also pent-up demand among consumers who held back on big-ticket purchases during the recession, says James Bell, executive market analyst at Kelley Blue Book. And many people know that "at the end of the month, dealers are a little more willing to wheel and deal." Those hoping to get a tax deduction for a new model bought or leased for business also may be rushing to buy before the end of the year, Bell says.
People are clearly still in the mood to shop after Christmas. Kathy Grannis, spokeswoman for the National Retail Federation, says Dec. 26 is one of the busiest shopping days of the year, and the week after Christmas can account for up to 15% of holiday sales for non-auto retailers.
Luxury-car sales will likely get the biggest bump for the car business this week, thanks to stock market indicators that hit two-year highs last week, says Paul Taylor, chief economist for the National Automobile Dealers Association. Luxury-car buyers typically own the most stock outside of their retirement programs, Taylor says, and are most likely to feel more confident when the markets are up. Luxury-vehicle sales were already up 21% last month over November 2009.
Don't expect the incredible deals of 2008 and '09. Car dealers don't have to resort to the deep discounting as they did during the recession. Still, there are plenty of zero-percent financing or no-money-down lease deals, even on vehicles such as the Honda Odyssey minivan that are new for 2011.
"It truly is the 'perfect storm,' " Del Grande says. "It's like our version of Black Friday, but we get it for a whole week."
Car dealers are bracing for one of their biggest sales periods of the year this week as many consumers shift their attention from what's under the tree to what's in their garage.
Many dealers do up to 70% of their December business in the week after Christmas, says James O'Sullivan, CEO of Mazda North America. Some don't even bother to advertise much until right before Christmas, recognizing that it would be hard to get most consumers' attention, O'Sullivan says.
CARS.COM: Find the latest car deals
"December is not the biggest selling month of the year," says O'Sullivan, but Dec. 26 to Jan. 1 is the "most intense selling week of the year."
Several factors make the post-Christmas/pre-New Year's period a bountiful one for the car business. Some, including big stock market gains, make it likely this year will be busier than usual. Most important, many people are off work and kids are home from college, so there's time for families to shop.
"In the car business, weekends are our big volume days," says Shaun Del Grande, whose San Jose-based dealership chain sells brands including Honda, Toyota, Subaru and Mazda. This week, "Every day is like a weekend."
There's also pent-up demand among consumers who held back on big-ticket purchases during the recession, says James Bell, executive market analyst at Kelley Blue Book. And many people know that "at the end of the month, dealers are a little more willing to wheel and deal." Those hoping to get a tax deduction for a new model bought or leased for business also may be rushing to buy before the end of the year, Bell says.
People are clearly still in the mood to shop after Christmas. Kathy Grannis, spokeswoman for the National Retail Federation, says Dec. 26 is one of the busiest shopping days of the year, and the week after Christmas can account for up to 15% of holiday sales for non-auto retailers.
Luxury-car sales will likely get the biggest bump for the car business this week, thanks to stock market indicators that hit two-year highs last week, says Paul Taylor, chief economist for the National Automobile Dealers Association. Luxury-car buyers typically own the most stock outside of their retirement programs, Taylor says, and are most likely to feel more confident when the markets are up. Luxury-vehicle sales were already up 21% last month over November 2009.
Don't expect the incredible deals of 2008 and '09. Car dealers don't have to resort to the deep discounting as they did during the recession. Still, there are plenty of zero-percent financing or no-money-down lease deals, even on vehicles such as the Honda Odyssey minivan that are new for 2011.
"It truly is the 'perfect storm,' " Del Grande says. "It's like our version of Black Friday, but we get it for a whole week."
Friday, December 24, 2010
Happy Holidays
I just wanted to take a moment and wish my clients, friends and family and very Merry Christmas and a Safe and Prosperous New Year!I am looking forward to having a great 2011!
-Edwin-
-Edwin-
Thursday, December 23, 2010
Owning a Home Still the American Dream, Despite Housing Bust
The American Dream is still alive and kicking, including within immigrant and minority communities, according to a survey from mortgage giant Fannie Mae.
The housing crisis hasn't quenched the homeownership thirst, the company found. More than 51% of people said the bust did not change their willingness to buy a home and an additional 27% said it actually made them more likely to do so.
"The crisis has not put a dent in the desire to own," said Doug Duncan, Fannie's chief economist, "although it may have changed the reasons that people want to own."
The report, the first close analysis Fannie has taken of consumer attitudes about the rent-or-own decision, found that qualitative reasons -- like having the ability to remodel or to send the kids to a better school -- have overtaken financial considerations as the primary motivators for homeownership.
Some misperceptions about financial benefits may help to keep it high.
"People's attitudes don't always line up with empirical facts," said Duncan.
For example, although trillions of dollars of equity were wiped out by the housing bust and millions of people will lose homes to foreclosure, nearly two-thirds of people surveyed still believe purchasing a house is a safe investment. That could be viewed as a major disconnect.
Also, more than half the public thought buying a home was a good idea financially even if they plan to move out in less than three years. That's actually rarely true because transactional costs like real estate commissions, title insurance costs and mortgage fees take a big cut off the top of selling and purchase prices.
Furthermore, a huge majority, 86% of those surveyed, cite income-tax benefits -- mostly the mortgage interest deduction -- as a big reason to buy. That benefit, however, is very small for most homeowners or even nonexistent.
"Lower-income homeowners, for example, don't itemize," said Duncan, "so there is no tax benefit for them at all."
Broad homeownership hopes
Fannie found that no matter what their ethnicity or immigration status, Americans generally share similar positive attitudes toward homeownership, even though there are substantial differences among these groups in homeownership rates.
It seems that economic opportunities, not attitudes, account for much of the variation.
Only 44% of African Americans own homes, for instance, compared with 71% of whites, but that disparity starts to vanish among families in stronger financial circumstances. African Americans' homeownership rises to 60% for those earning between $50,000 and $99,000, for example.
The survey findings have implications for Fannie's business model. Non-Hispanic whites are projected to account for just 46% of the population by 2050. Immigration will account for most of the population growth between now and then.
And since, as the report stated, "strong homeownership aspirations exist across races, ethnicities and immigrant groups," Fannie can count on future demand for owner-occupied homes remaining strong, as long as the economy cooperates.
(Source: CNNMoney.com, 12/16/10)
The housing crisis hasn't quenched the homeownership thirst, the company found. More than 51% of people said the bust did not change their willingness to buy a home and an additional 27% said it actually made them more likely to do so.
"The crisis has not put a dent in the desire to own," said Doug Duncan, Fannie's chief economist, "although it may have changed the reasons that people want to own."
The report, the first close analysis Fannie has taken of consumer attitudes about the rent-or-own decision, found that qualitative reasons -- like having the ability to remodel or to send the kids to a better school -- have overtaken financial considerations as the primary motivators for homeownership.
Some misperceptions about financial benefits may help to keep it high.
"People's attitudes don't always line up with empirical facts," said Duncan.
For example, although trillions of dollars of equity were wiped out by the housing bust and millions of people will lose homes to foreclosure, nearly two-thirds of people surveyed still believe purchasing a house is a safe investment. That could be viewed as a major disconnect.
Also, more than half the public thought buying a home was a good idea financially even if they plan to move out in less than three years. That's actually rarely true because transactional costs like real estate commissions, title insurance costs and mortgage fees take a big cut off the top of selling and purchase prices.
Furthermore, a huge majority, 86% of those surveyed, cite income-tax benefits -- mostly the mortgage interest deduction -- as a big reason to buy. That benefit, however, is very small for most homeowners or even nonexistent.
"Lower-income homeowners, for example, don't itemize," said Duncan, "so there is no tax benefit for them at all."
Broad homeownership hopes
Fannie found that no matter what their ethnicity or immigration status, Americans generally share similar positive attitudes toward homeownership, even though there are substantial differences among these groups in homeownership rates.
It seems that economic opportunities, not attitudes, account for much of the variation.
Only 44% of African Americans own homes, for instance, compared with 71% of whites, but that disparity starts to vanish among families in stronger financial circumstances. African Americans' homeownership rises to 60% for those earning between $50,000 and $99,000, for example.
The survey findings have implications for Fannie's business model. Non-Hispanic whites are projected to account for just 46% of the population by 2050. Immigration will account for most of the population growth between now and then.
And since, as the report stated, "strong homeownership aspirations exist across races, ethnicities and immigrant groups," Fannie can count on future demand for owner-occupied homes remaining strong, as long as the economy cooperates.
(Source: CNNMoney.com, 12/16/10)
Wednesday, December 22, 2010
Used-Vehicle Prices Rise, But So Do Profits
Franchised dealers have complained about paying more for used vehicles. But they're grousing all the way to the bank, data from the nation's largest dealer group show.
Dealership financial profile data from the National Automobile Dealers Association show that the typical retail gross profit at franchised dealerships jumped 35 percent to $2,245 per used vehicle sold in the first 10 months of the year vs. the year-earlier period.
The average used-vehicle retail price rose 10 percent to $16,371 in the same period, the data show. The figure encompasses all model years.
NADA's dealership profile is based on data from NADA dealership 20 groups and represents a broad range of dealerships by size.
In light of the current used-vehicle shortage, NADA chief economist Paul Taylor expects used-vehicle prices to remain firm if the economy continues to grow even at a relatively slow pace. Used-vehicle gross profits depend on variables such as new-car incentives, he says.
For typical NADA members, used-vehicle sales revenue, including finance and insurance revenue, rose 21 percent in the first 10 months to $8.6 million.
NADA Used Car Guides, a subsidiary of NADA that analyzes and publishes used-vehicle price data, shows that the average wholesale price of used late-model vehicles, defined as those 2 to 5 years old, increased 11 percent to $15,911 through October from a year earlier.
Data from ADESA Analytical Services show that industrywide whole-sale used-vehicle prices continued to rise in November, up 2 percent from November 2009 to an average of $9,788.
(Source: Automotive News, 12/20/10)
Dealership financial profile data from the National Automobile Dealers Association show that the typical retail gross profit at franchised dealerships jumped 35 percent to $2,245 per used vehicle sold in the first 10 months of the year vs. the year-earlier period.
The average used-vehicle retail price rose 10 percent to $16,371 in the same period, the data show. The figure encompasses all model years.
NADA's dealership profile is based on data from NADA dealership 20 groups and represents a broad range of dealerships by size.
In light of the current used-vehicle shortage, NADA chief economist Paul Taylor expects used-vehicle prices to remain firm if the economy continues to grow even at a relatively slow pace. Used-vehicle gross profits depend on variables such as new-car incentives, he says.
For typical NADA members, used-vehicle sales revenue, including finance and insurance revenue, rose 21 percent in the first 10 months to $8.6 million.
NADA Used Car Guides, a subsidiary of NADA that analyzes and publishes used-vehicle price data, shows that the average wholesale price of used late-model vehicles, defined as those 2 to 5 years old, increased 11 percent to $15,911 through October from a year earlier.
Data from ADESA Analytical Services show that industrywide whole-sale used-vehicle prices continued to rise in November, up 2 percent from November 2009 to an average of $9,788.
(Source: Automotive News, 12/20/10)
Tuesday, December 21, 2010
Shoppers Spending More in Christmas Countdown
The malls were packed last weekend, and in many places it's beginning to look a little like a pre-recession Christmas.
Americans spent more than last year on clothing, luxury goods and even furniture, delivering healthy gains across the board Oct. 31 through Saturday, according to MasterCard Advisors' SpendingPulse, which tracks spending across all transactions including cash.
The online category continued to be a bright spot. The big exception was consumer electronics, dragged down by deep discounting of TVs. That area was virtually unchanged from a year ago.
"This is the first normal Christmas in three years," said Michael McNamara, vice president of research and analysis for SpendingPulse. He said there is "genuine demand" for a variety of products, even higher-ticket items.
Sales of clothing rose 9.8%, with particular strength in men's clothing. Jewelry revenue rose 2.6% and furniture rose 3.4%, according to SpendingPulse.
Malls reported higher traffic over the weekend, including Saturday -- the Saturday before Christmas, known as "Super Saturday." It's one of the busiest shopping days of the year. Research firm ShopperTrak expects it will be the third-busiest this year. The lack of any major storms nationwide was a boon for shoppers and retailers.
The strong numbers are encouraging to retailers, who this fall remained worried that the inventory they ordered earlier in the year, when the economic recovery looked stronger, might end up being too much.
But after a slowdown this summer, spending picked up amid more positive economic signs. McNamara said there's no evidence of emergency discounting and stores have appropriate levels of inventory.
Robin Lewis, CEO of The Robin Report, a retail insiders' newsletter, said the spending stems from three factors: consumers have been paying down their debt slightly, the savings rate has decreased slightly and working hours have increased, partly due to seasonal demand.
"Those three things put a few more bucks in their pocket," which becomes signficant combined with pent-up demand.
Still, spending is still below pre-recession levels in many categories. McNamara estimated that furniture is about 20% below the level before the Great Recession, while luxury and jewelry sales are about 10% below the peak before the big downturn. Clothing sales are recovering faster.
At the Mall of America in Bloomington, Minn., the nation's largest mall, Public Relations Director Dan Jasper said a big snowstorm the weekend before that closed the mall had shoppers packing the mall this weekend to catch up. Preliminary reports showed 200,000 came to the mall Saturday, one of its busiest days ever and the busiest so far this year.
"People are a little panicked. I'm hearing them say 'We've gotta get this done,' and that doesn't usually show up until the 22nd or the 23rd."
It wasn't the only mall that saw packed stores and parking lots. Greg Maloney, CEO of the retail practice of Jones Lang LaSalle, which operates about 90 malls across the country, said traffic was up 10% to 12% across the country over the same weekend last year.
Karen MacDonald, a spokeswoman for Taubman Centers, which owns or manages 26 shopping centers, said many stores were reporting higher traffic.
Most shoppers still had about half their Christmas shopping left heading into the weekend, according to the National Retail Federation trade group. It raised its holiday sales forecast last week to a 3.3% rise, approaching 2007 levels, from an earlier forecast of a 2.3% increase.
In an interview with The Associated Press last week, Myron Ullman III, chairman and CEO of retailer J.C. Penney, said he feels good about the holiday season so far, and inventory is in line with demand. Like many other retailers, Penney had slim offerings last Christmas because it worried about having too many leftovers. Consequently, many merchants, including Penney, sold out of some items earlier in the 2009 Christmas season.
"People seem to be feeling better," he said.
Shoppers stuck to lessons learned during the recession: using cash, not credit, and sticking to a budget. Although they are spending slightly freer, with unemployment still stuck at 10% and a strained housing market consumers are still under pressure to spend wisely.
"The consumer has returned, not blindly, but thoughtfully," said Stifel Nicolas analyst Richard Jaffe.
"I have a budget and when it's gone, it's gone," said Nicala King of Vancouver, Wash., who was at Barnes & Noble picking up a few final items. She was set on preserving the savings she built up after paying off her credit cards last year.
Retailers are offering promotions that are more planned than last year, Wall Street Strategies analyst Brian Sozzi said.
Ann Taylor Loft, for example, has had a 40% off promotion in its stores since Thanksgiving, although on Saturday it increased that to 50% off for sweaters.
"It's not slash-and-burn on prices, but promotions are out there, and that is one of the main ingredients driving sales," Jaffe said. Online shopping was going strong as well. On Saturday, online retail spending rose 18%, and the average order size rose 4% to $169.04 compared with the same day a year ago, according to IBM Coremetrics. As of Friday, shoppers have spent $27.46 billion online since Nov. 1, up 12% from last year, according to research firm comScore Inc.
Paul and Connie Surface drove about 60 miles Saturday from their Waveland, Ind., farm to downtown Indianapolis to buy a bottle of Coach's Poppy perfume for their daughter-in-law and take in the mall scene. They've shopped every weekend since Thanksgiving and are pretty much finished.
"This is not a bad economy if you've got a job," said Paul, 62. "The stores are discounting nice, and the interest rates are low."
(Source: USA Today, 12/20/10)
Americans spent more than last year on clothing, luxury goods and even furniture, delivering healthy gains across the board Oct. 31 through Saturday, according to MasterCard Advisors' SpendingPulse, which tracks spending across all transactions including cash.
The online category continued to be a bright spot. The big exception was consumer electronics, dragged down by deep discounting of TVs. That area was virtually unchanged from a year ago.
"This is the first normal Christmas in three years," said Michael McNamara, vice president of research and analysis for SpendingPulse. He said there is "genuine demand" for a variety of products, even higher-ticket items.
Sales of clothing rose 9.8%, with particular strength in men's clothing. Jewelry revenue rose 2.6% and furniture rose 3.4%, according to SpendingPulse.
Malls reported higher traffic over the weekend, including Saturday -- the Saturday before Christmas, known as "Super Saturday." It's one of the busiest shopping days of the year. Research firm ShopperTrak expects it will be the third-busiest this year. The lack of any major storms nationwide was a boon for shoppers and retailers.
The strong numbers are encouraging to retailers, who this fall remained worried that the inventory they ordered earlier in the year, when the economic recovery looked stronger, might end up being too much.
But after a slowdown this summer, spending picked up amid more positive economic signs. McNamara said there's no evidence of emergency discounting and stores have appropriate levels of inventory.
Robin Lewis, CEO of The Robin Report, a retail insiders' newsletter, said the spending stems from three factors: consumers have been paying down their debt slightly, the savings rate has decreased slightly and working hours have increased, partly due to seasonal demand.
"Those three things put a few more bucks in their pocket," which becomes signficant combined with pent-up demand.
Still, spending is still below pre-recession levels in many categories. McNamara estimated that furniture is about 20% below the level before the Great Recession, while luxury and jewelry sales are about 10% below the peak before the big downturn. Clothing sales are recovering faster.
At the Mall of America in Bloomington, Minn., the nation's largest mall, Public Relations Director Dan Jasper said a big snowstorm the weekend before that closed the mall had shoppers packing the mall this weekend to catch up. Preliminary reports showed 200,000 came to the mall Saturday, one of its busiest days ever and the busiest so far this year.
"People are a little panicked. I'm hearing them say 'We've gotta get this done,' and that doesn't usually show up until the 22nd or the 23rd."
It wasn't the only mall that saw packed stores and parking lots. Greg Maloney, CEO of the retail practice of Jones Lang LaSalle, which operates about 90 malls across the country, said traffic was up 10% to 12% across the country over the same weekend last year.
Karen MacDonald, a spokeswoman for Taubman Centers, which owns or manages 26 shopping centers, said many stores were reporting higher traffic.
Most shoppers still had about half their Christmas shopping left heading into the weekend, according to the National Retail Federation trade group. It raised its holiday sales forecast last week to a 3.3% rise, approaching 2007 levels, from an earlier forecast of a 2.3% increase.
In an interview with The Associated Press last week, Myron Ullman III, chairman and CEO of retailer J.C. Penney, said he feels good about the holiday season so far, and inventory is in line with demand. Like many other retailers, Penney had slim offerings last Christmas because it worried about having too many leftovers. Consequently, many merchants, including Penney, sold out of some items earlier in the 2009 Christmas season.
"People seem to be feeling better," he said.
Shoppers stuck to lessons learned during the recession: using cash, not credit, and sticking to a budget. Although they are spending slightly freer, with unemployment still stuck at 10% and a strained housing market consumers are still under pressure to spend wisely.
"The consumer has returned, not blindly, but thoughtfully," said Stifel Nicolas analyst Richard Jaffe.
"I have a budget and when it's gone, it's gone," said Nicala King of Vancouver, Wash., who was at Barnes & Noble picking up a few final items. She was set on preserving the savings she built up after paying off her credit cards last year.
Retailers are offering promotions that are more planned than last year, Wall Street Strategies analyst Brian Sozzi said.
Ann Taylor Loft, for example, has had a 40% off promotion in its stores since Thanksgiving, although on Saturday it increased that to 50% off for sweaters.
"It's not slash-and-burn on prices, but promotions are out there, and that is one of the main ingredients driving sales," Jaffe said. Online shopping was going strong as well. On Saturday, online retail spending rose 18%, and the average order size rose 4% to $169.04 compared with the same day a year ago, according to IBM Coremetrics. As of Friday, shoppers have spent $27.46 billion online since Nov. 1, up 12% from last year, according to research firm comScore Inc.
Paul and Connie Surface drove about 60 miles Saturday from their Waveland, Ind., farm to downtown Indianapolis to buy a bottle of Coach's Poppy perfume for their daughter-in-law and take in the mall scene. They've shopped every weekend since Thanksgiving and are pretty much finished.
"This is not a bad economy if you've got a job," said Paul, 62. "The stores are discounting nice, and the interest rates are low."
(Source: USA Today, 12/20/10)
Thursday, December 16, 2010
Majority of Holiday Shoppers Still Have Gifts to Buy
Hard to pass up holiday sales helped motivate holiday shoppers a little earlier this year, though most agree they still have quite a dent to make in their list. According to the National Retail Federation's 2010 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, the average person had completed 49.5 percent of their holiday shopping by the second week of December, up from 46.7 percent at same time last holiday season.
"It's well-known that at least half of the shopping that occurs during the holiday season happens during the last few weeks, making the final stretch of utmost importance to retailers," said NRF President and CEO Matthew Shay. "With the big day falling on a Saturday this year and a lot of shopping left to be done, retailers will continue to push aggressive promotions in the weekdays leading up to it, hoping to remind shoppers they only have one more weekend to shop."
According to the survey, 37 million people (16.9%) had not even started their shopping as of late last week, lower than the estimated 42 million people who said so during same point last year. Additionally, 22 million go-getters (10.1%) say they have already finished, up from 8.6 percent who had finished by this time last year. Though they started the season with a bang, men admit to having completed slightly less than women at this point (48.5% vs. 50.4% respectively).
It seems many shoppers are well aware they only have one big weekend left to shop. According to the survey, most holiday shoppers (32.4%) plan to complete their list prior to Saturday, December 18. Though, Friday, December 24 (11.9%) is expected to be the second busiest day between the 18th and Christmas Day.
Of the people who say they have used their smartphone to shop this holiday season, more than one-quarter (26.0%) have used the phone to make an actual purchase. Nearly one-third (32.5%) are specifically using their phone to receive text messages with special offers and 34.6 percent are reading what their peers are saying in customer reviews. It seems locating store hours or locations (50.7%) and perusing their options by browsing for gifts (60.2%) are the most popular ways shoppers have used their phones thus far.
"Just as we saw with the emergence of Internet shopping, mobile shopping, too, is already starting to catch on in terms of being a generator of sales for retailers," said Phil Rist, Executive Vice President, Strategic Initiatives, BIGresearch. "Tracking down mobile coupons and reading customer reviews remain extremely popular options for shoppers as they look for the best price, product and even store location."
Department stores can expect the larger share of traffic over the next few weeks (38.4%), though online retailers (37.6%) and discount stores (36.5%) will also be popular shopping destinations for last-minute shoppers. Electronics stores (19.4%), clothing or accessories stores (18.8%) and outlet stores (10.8%) will also see their share of procrastinators in the coming days.
When it comes to gifts that have been bought so far, most say they have purchased clothes or clothing accessories (43.9%). Though books, CDs, DVDs, videos or video games (38.1%) have also been popular purchases. Consumers also bought toys (35.3%), gift cards (29.9%), consumer electronics (21.3%), food or candy (20.0%), and home décor (15.2%).
When asked which payment method they have used the most, four out of ten (40.9%) have used their debit or check cards most often. Nearly one-third (31.1%) have used their credit cards and nearly one-quarter (24.4%) have used cash. A mere 3.6 percent have relied on checks.
Christmas Day itself will largely serve as a day for consumers to cook (45.6%), visit friends and family (66.0%) and watch TV (52.8%), but nearly one-quarter (24.1%) will browse the Internet as well. NRF has revised its holiday sales forecast to 3.3 percent, or $451.5 billion, up from the original 2.3 percent expected increase.
(Source: National Retail Federation, 12/15/10)
"It's well-known that at least half of the shopping that occurs during the holiday season happens during the last few weeks, making the final stretch of utmost importance to retailers," said NRF President and CEO Matthew Shay. "With the big day falling on a Saturday this year and a lot of shopping left to be done, retailers will continue to push aggressive promotions in the weekdays leading up to it, hoping to remind shoppers they only have one more weekend to shop."
According to the survey, 37 million people (16.9%) had not even started their shopping as of late last week, lower than the estimated 42 million people who said so during same point last year. Additionally, 22 million go-getters (10.1%) say they have already finished, up from 8.6 percent who had finished by this time last year. Though they started the season with a bang, men admit to having completed slightly less than women at this point (48.5% vs. 50.4% respectively).
It seems many shoppers are well aware they only have one big weekend left to shop. According to the survey, most holiday shoppers (32.4%) plan to complete their list prior to Saturday, December 18. Though, Friday, December 24 (11.9%) is expected to be the second busiest day between the 18th and Christmas Day.
Of the people who say they have used their smartphone to shop this holiday season, more than one-quarter (26.0%) have used the phone to make an actual purchase. Nearly one-third (32.5%) are specifically using their phone to receive text messages with special offers and 34.6 percent are reading what their peers are saying in customer reviews. It seems locating store hours or locations (50.7%) and perusing their options by browsing for gifts (60.2%) are the most popular ways shoppers have used their phones thus far.
"Just as we saw with the emergence of Internet shopping, mobile shopping, too, is already starting to catch on in terms of being a generator of sales for retailers," said Phil Rist, Executive Vice President, Strategic Initiatives, BIGresearch. "Tracking down mobile coupons and reading customer reviews remain extremely popular options for shoppers as they look for the best price, product and even store location."
Department stores can expect the larger share of traffic over the next few weeks (38.4%), though online retailers (37.6%) and discount stores (36.5%) will also be popular shopping destinations for last-minute shoppers. Electronics stores (19.4%), clothing or accessories stores (18.8%) and outlet stores (10.8%) will also see their share of procrastinators in the coming days.
When it comes to gifts that have been bought so far, most say they have purchased clothes or clothing accessories (43.9%). Though books, CDs, DVDs, videos or video games (38.1%) have also been popular purchases. Consumers also bought toys (35.3%), gift cards (29.9%), consumer electronics (21.3%), food or candy (20.0%), and home décor (15.2%).
When asked which payment method they have used the most, four out of ten (40.9%) have used their debit or check cards most often. Nearly one-third (31.1%) have used their credit cards and nearly one-quarter (24.4%) have used cash. A mere 3.6 percent have relied on checks.
Christmas Day itself will largely serve as a day for consumers to cook (45.6%), visit friends and family (66.0%) and watch TV (52.8%), but nearly one-quarter (24.1%) will browse the Internet as well. NRF has revised its holiday sales forecast to 3.3 percent, or $451.5 billion, up from the original 2.3 percent expected increase.
(Source: National Retail Federation, 12/15/10)
Wednesday, December 15, 2010
American Family Insurance Creates Hispanic Marketing Campaign
American Family Insurance, in partnership with The San Jose Group, recently debuted its first-ever music-licensing advertising campaign for the Hispanic market.
The lyrics of "No Hay Nadie Como Tu" (English: There's no one like you) complement American Family Insurance's advertising program aimed to identify with the family that is like no other, whether they are of a different culture or have different needs. The reggaeton song by Calle 13 and Café Tacuba won the best alternative song at the 2009 Latin Grammy's and is a collective mix of Latin music styles.
"This popular song was an ideal match for American Family's 'Unique Family' general market campaign and enhances the communication that our product offerings are tailored for each family's specific needs," said Telisa Yancy, the company's advertising director. "The Hispanic audience quickly identifies with Nadie Como Tu's lyrics. The song allowed us to properly transculturate our campaign and reach an important customer base."
Along with a television and radio spot, the campaign also includes print and online banner ads to complement the unique family branding message. The current campaign is scheduled to run through December.
(Source: Insurance Journal, 11/16/10)
The lyrics of "No Hay Nadie Como Tu" (English: There's no one like you) complement American Family Insurance's advertising program aimed to identify with the family that is like no other, whether they are of a different culture or have different needs. The reggaeton song by Calle 13 and Café Tacuba won the best alternative song at the 2009 Latin Grammy's and is a collective mix of Latin music styles.
"This popular song was an ideal match for American Family's 'Unique Family' general market campaign and enhances the communication that our product offerings are tailored for each family's specific needs," said Telisa Yancy, the company's advertising director. "The Hispanic audience quickly identifies with Nadie Como Tu's lyrics. The song allowed us to properly transculturate our campaign and reach an important customer base."
Along with a television and radio spot, the campaign also includes print and online banner ads to complement the unique family branding message. The current campaign is scheduled to run through December.
(Source: Insurance Journal, 11/16/10)
Tuesday, December 14, 2010
Shoppers Look to Rewards for Holiday Spending
Consumers are looking to stretch their holiday dollars with benefits from the various rewards programs they belong to, according to research from LoyaltyOne and Epsilon Targeting.
According to the companies' research, which involved a nine-question survey sent to more than 700 U.S. households, 11% of consumers said they planned to use reward points or miles to augment their holiday spending this year. Of that group, 70% said they would use those points on purchases for other people, rather than for themselves.
According to the survey, more than 70% of consumers said they were occasional or frequent users of rewards programs. Of those users, 8.1% of them said they planned on spending more on holiday purchases this year, compared with 6.6% of the total respondents.
"Retailers who use data from their reward programs to respond to customers' most pressing concerns at critical times like the holiday gift giving season can enhance the shopper experience and leverage relationships in a way that deepens loyalty to their store or their brand," said Epsilon Loyalty Solutions Vice President John Bartold, in a statement.
Meanwhile, a separate survey found that Canadians are much more likely to use rewards programs than Americans. According to the Air Miles and American Express Holiday Rewards survey, 91% of Canadians use rewards programs, compared with 72% of Americans. Eighteen percent of Canadians said they plan to use those programs for holiday purchases, compared with 8% of Americans.
Americans, on the other hand, are more likely to shop online than Canadians, at a rate of 73% vs. 44% for general sites. However, when the online shopping involves a loyalty or rewards site, Canadians are three times more likely to shop online.
(Source: Marketing Daily, 12/04/10)
According to the companies' research, which involved a nine-question survey sent to more than 700 U.S. households, 11% of consumers said they planned to use reward points or miles to augment their holiday spending this year. Of that group, 70% said they would use those points on purchases for other people, rather than for themselves.
According to the survey, more than 70% of consumers said they were occasional or frequent users of rewards programs. Of those users, 8.1% of them said they planned on spending more on holiday purchases this year, compared with 6.6% of the total respondents.
"Retailers who use data from their reward programs to respond to customers' most pressing concerns at critical times like the holiday gift giving season can enhance the shopper experience and leverage relationships in a way that deepens loyalty to their store or their brand," said Epsilon Loyalty Solutions Vice President John Bartold, in a statement.
Meanwhile, a separate survey found that Canadians are much more likely to use rewards programs than Americans. According to the Air Miles and American Express Holiday Rewards survey, 91% of Canadians use rewards programs, compared with 72% of Americans. Eighteen percent of Canadians said they plan to use those programs for holiday purchases, compared with 8% of Americans.
Americans, on the other hand, are more likely to shop online than Canadians, at a rate of 73% vs. 44% for general sites. However, when the online shopping involves a loyalty or rewards site, Canadians are three times more likely to shop online.
(Source: Marketing Daily, 12/04/10)
Radio Gains More Than 3 Million Listeners
Arbitron Inc.'s RADAR 107 National Radio Listening Report, which was released yesterday, shows an increase of 3.3 million radio listeners age twelve and older per week, versus the December 2009 report. The number of persons twelve and older listening to radio each week now reaches an estimated 239.8 million -- 93.2 percent of all Americans twelve and older.
In addition to persons twelve and older, radio listening increased year-over-year across major demographic groups, with adults aged 18 to 34 showing the biggest gains. The number of adults aged 18 to 34 who are weekly radio listeners increased nearly 960,000 in the past year, and adults aged 25 to 54 gained more than 750,000 in the same period. Meanwhile, teens aged 12 to 17 continue to embrace radio broadcasts with an average weekly increase of 365,000 versus last year's report.
Despite the proliferation of competing media platforms, radio continues to reach just about everyone on a regular basis. RADAR 107 indicates that, over the course of a week, radio is listened to by over 92 percent of all teens aged 12 to 17, 94 percent of adults aged 18 to 34, and 95 percent of adults in the 18 to 49 and 25 to 54 age brackets.
Radio's diverse appeal
The data from RADAR 107 showcases radio's penetration among various ethnic groups, particularly Black (non-Hispanic) and Hispanic, a direct result of airing an array of formats.
* Overall, radio continues to reach more than 93 percent of Black (non-Hispanic) persons aged 12 and older and more than 95 percent of Hispanics aged 12 and older on a weekly basis. Hispanic listeners 12 years and older grew more than 1.4 million year-over-year.
* More Hispanic teens aged 12 to 17 are tuning in to radio, versus the same period a year ago. This demographic group increased 177,000 average weekly listeners, year-over-year.
* Black (non-Hispanic) and Hispanic adults aged 18 to 49 demonstrated the biggest gains in overall weekly radio listenership versus last year, showing an increase of 165,000 and 834,000, respectively.
On an average week, radio reaches 95 percent of adults 18 and older with a household income of $75K or more. More than 96 percent of adults aged 25 to 54 that are college graduates and have a household income of over $50K tune in to radio weekly. Radio also delivers 96 percent of adults aged 18 to 49 with a college degree.
Network radio commercial listening
Arbitron also reported in its December 2010 RADAR 107 radio network audience ratings that over 189 million Persons 12 and older heard one or more network radio commercials in an average week of the survey period. That's an increase of over 800,000 versus the December 2009 report.
The RADAR 107 survey period demonstrates network radio's continued broad reach across all key demographics on a year-over-year basis. Among the prime audience demographics sought by advertisers, the commercials aired on the 54 radio networks reached:
* 73.7 percent of persons aged 12+ (189,685,000 persons)
* 74.1 percent of persons aged 18+ (172,292,000 persons)
* 73.3 percent of persons aged 35+ (118,732,000 persons)
* 76.6 percent of persons aged 18-49 (103,455,000 persons)
* 76.9 percent of persons aged 25-54 (97,537,000 persons)
(Source: Arbitron, 12/13/10)
In addition to persons twelve and older, radio listening increased year-over-year across major demographic groups, with adults aged 18 to 34 showing the biggest gains. The number of adults aged 18 to 34 who are weekly radio listeners increased nearly 960,000 in the past year, and adults aged 25 to 54 gained more than 750,000 in the same period. Meanwhile, teens aged 12 to 17 continue to embrace radio broadcasts with an average weekly increase of 365,000 versus last year's report.
Despite the proliferation of competing media platforms, radio continues to reach just about everyone on a regular basis. RADAR 107 indicates that, over the course of a week, radio is listened to by over 92 percent of all teens aged 12 to 17, 94 percent of adults aged 18 to 34, and 95 percent of adults in the 18 to 49 and 25 to 54 age brackets.
Radio's diverse appeal
The data from RADAR 107 showcases radio's penetration among various ethnic groups, particularly Black (non-Hispanic) and Hispanic, a direct result of airing an array of formats.
* Overall, radio continues to reach more than 93 percent of Black (non-Hispanic) persons aged 12 and older and more than 95 percent of Hispanics aged 12 and older on a weekly basis. Hispanic listeners 12 years and older grew more than 1.4 million year-over-year.
* More Hispanic teens aged 12 to 17 are tuning in to radio, versus the same period a year ago. This demographic group increased 177,000 average weekly listeners, year-over-year.
* Black (non-Hispanic) and Hispanic adults aged 18 to 49 demonstrated the biggest gains in overall weekly radio listenership versus last year, showing an increase of 165,000 and 834,000, respectively.
On an average week, radio reaches 95 percent of adults 18 and older with a household income of $75K or more. More than 96 percent of adults aged 25 to 54 that are college graduates and have a household income of over $50K tune in to radio weekly. Radio also delivers 96 percent of adults aged 18 to 49 with a college degree.
Network radio commercial listening
Arbitron also reported in its December 2010 RADAR 107 radio network audience ratings that over 189 million Persons 12 and older heard one or more network radio commercials in an average week of the survey period. That's an increase of over 800,000 versus the December 2009 report.
The RADAR 107 survey period demonstrates network radio's continued broad reach across all key demographics on a year-over-year basis. Among the prime audience demographics sought by advertisers, the commercials aired on the 54 radio networks reached:
* 73.7 percent of persons aged 12+ (189,685,000 persons)
* 74.1 percent of persons aged 18+ (172,292,000 persons)
* 73.3 percent of persons aged 35+ (118,732,000 persons)
* 76.6 percent of persons aged 18-49 (103,455,000 persons)
* 76.9 percent of persons aged 25-54 (97,537,000 persons)
(Source: Arbitron, 12/13/10)
Monday, December 13, 2010
Tips for keeping holiday spending in check
By Jayne O'Donnell, USA TODAY
Setting a budget, making a list and checking both regularly are keys to savvy holiday spending, personal finance experts say.
"Everyone, regardless of income, always tends to spend a little bit more than they anticipated," says Barbara Stark, director of education and community development at American Debt Counseling in Sunrise, Fla. "People think, 'I'll deal with it later,' but then there's shock and panic when the January bills arrive and the cycle begins again."
Five members of the USA TODAY Shopper Panel are keeping us in the loop as they plan their purchases and buy gifts this holiday season, when many consumers say they're loosening the grip on their purse strings a bit. We're also checking with experts to see how they — and we — could shop smarter. There's still plenty of time to chart a new course (or at least stop shopping) this holiday season.
Four lessons based on the experiences of our shoppers
1Save money all year. LeLynda Briggs, 24, of New Orleans had $25 taken out of each paycheck all year for holiday gifts so she wouldn't wind up in debt for three months after the holidays like she did last season.
CAUTIOUS OPTIMISM: Holiday shopping series tracks 5 shoppers
VIDEO: Ways to save with online shopping
VIDEO: Haggling tips for getting holiday bargains
VIDEO: Tips for spotting counterfeit products
Stark put $10 in an envelope every week and used that as her holiday fund. "If it's out of my wallet, I forget I ever had it," she says.
Dawn Masters, 43, of Denver contributes to a "fun money" fund that will help pay for a Disney trip in the spring but also gets tapped for holiday purchases. She has $125 taken out of her account twice a month.
2Set a budget. Eason Adams, like Briggs, got hit with big bills from his holiday shopping early this year. So he set a budget of about $100 per person this year, even though he has a young son who still believes in Santa Claus.
"I don't really have much of a choice but to go by my budget, as I will not be putting any purchases on credit cards," says Adams, 31, a long-distance truck driver from Inez, Ky.
Marietta Landon, 31, of Douglasville, Ga., doesn't set a strict budget but sticks to about $100 a person for her small family. She says she has "never stressed out about it" or carried a credit card balance over to the next month.
Setting a budget "sounds so 'bah, humbug,' " says Manisha Thakor, co-author of a personal finance book for couples, Get Financially Naked. But it's something everyone should do, she says.
To stay in even closer touch with your budget — or to see if it needs adjusting — she recommends signing up for notifications if your bank balance hits a certain level and checking that balance at least weekly.
People "do not want to look at their financials," says Thakor. "But you need to understand exactly what you have left to work with."
3Keep track of purchases. While it's important to make a list of what you're buying, it's also critical to have a list of everything you've already bought. Tricia Richards, 46, of South Abington Township, Pa., says she's forgotten purchases in the past and fears she's guilty of it again this year.
"Of course, I've lost track of some things I've bought already," says Richards, a self-employed public relations person. "My biggest overbuying surprise has been the stocking stuffers and Advent calendar items. When something costs just a few bucks, it's so easy to rationalize another purchase."
To avoid that problem, Stark — who has two twentysomething sons — puts her holiday gift list on an Excel spreadsheet and carries it around in her wallet. She updates it as she buys things and makes a note of what she's spent.
"I could be done with my shopping, but I feel like I need to buy more," says Stark. "It takes a lot of self-control to stick to your list and stick to your budget."
Thakor says losing track of purchases is one of the most common problems she hears from people she counsels on personal finance through her work with the Women's Financial Literacy Initiative.
4Avoid credit cards if money is tight. Adams cut up his credit cards so he didn't get himself in debt again. Thakor says that's a smart move. She recommends anyone who knows he can't pay off his bill by the due date should use debit cards. She prefers debit cards over cash because it's easier to monitor what you spend.
Richards also steers toward debit cards, especially at the holidays: "I rarely slide a credit card out of my wallet."
According to the American Bankers Association, the average consumer takes six months to a year to pay off holiday debt. And it can take far longer: Stark notes someone who charges $1,220 on a credit card with an 18% interest rate and pays only the minimum payment each month would spend 11 years paying it off. The gifts would wind up costing more than $2,700.
Stark, who is done with her shopping, stayed on budget and didn't put anything on a credit card. "I'm so excited I feel like I have to buy myself a present," she says.
But she won't.
How some businesses are doing
L.L. Bean: Good times could be here again
Christmas may be more than two weeks away, but L.L. Bean CEO Chris McCormick can already say with confidence that the season will be the outdoors clothing and gear retailer's best since 2007.
People are spending more money and buying more items on each store or website visit. Order totals are running 6% higher than last year. "The trend is so clear: People are feeling more confident," McCormick says.
Last Monday turned out to be an even bigger day for sales than Cyber Monday, which set records for the Bean website. "Strong double-digit growth" over the same period last year is putting L.L. Bean well head of its forecast for a 2.3% increase over the 2009 holiday season.
Sporting equipment became an even bigger seller during the recession, McCormick says, and now higher-end products such as kayaks and bicycles are seeing sales boosts. Skis and snowshoes are "really taking off," he says.
Unlike many retailers, L.L. Bean adjusted its inventory for the disastrous 2008 holiday season so it didn't have to resort to deep discounting to move unsold items. Bean remains fairly non-promotional but did launch free shipping in August. The deal runs through the holidays with no minimum purchase requirement. That's seldom done in retailing.
McCormick says customers told the company they were "annoyed with shipping charges," so Bean decided it had little choice. The deal has boosted sales considerably but at so much cost, it's "at best a break-even," he says.
Discounters that have seen big sales increases during recessions have historically done well after recessions because they have an expanded customer base. The reverse can be true, too, McCormick says, and it helps higher-end companies such as L.L. Bean.
"People who have tried trading down in the past have realized you get what you pay for," McCormick says.
UncommonGoods.com: Pricier gifts are selling well
UncommonGoods.com didn't offer any Cyber Monday specials, but did such a brisk business on the Monday after Thanksgiving that it has raised its forecast for a holiday sales increase from "almost 15%" to "up to 20%."
The online and catalog retailer of environmentally friendly, quirky and otherwise creative gifts may have had a bumpy few first years in business after launching in 1999, but things are going smoothly now. The workforce more than doubled to keep up with calls, and packages are actually getting to consumers ahead of schedule.
Customer Brian Stewart e-mailed Uncommon Goods to say that he had "ordered many things from many — ahem — big retail websites on Cyber Monday, and my order from you was on my doorstep" while the other sites were "finally finished processing my orders and sending e-mails."
Along with many other bricks-and-mortar and online retailers, Uncommon Goods is finding pricier items are selling well — such as jewelry and $185 framed dog breed "blueprints."
And while electronics remain a hot seller at other retailers, an anti-electronics product is proving one of Uncommon Goods' top products. In the first two weeks they offered it last month, the company sold hundreds of the $15 "Phone Kerchief," a cloth embedded with silver fibers that will block calls to a mobile phone.
It's a way to show people "that they are more important to you than your device," says Uncommon Goods CEO David Bolotsky.
In October, the company overhauled its website only to see sales plummet. Now that the kinks — compatibility problems with browsers on some customers' computers — have been worked out, it's now running twice as fast as it did a year ago.
There were a few times when the site slowed down on Cyber Monday, but nothing like the problems some far bigger retailers have had in recent years during the post-Thanksgiving rush.
Setting a budget, making a list and checking both regularly are keys to savvy holiday spending, personal finance experts say.
"Everyone, regardless of income, always tends to spend a little bit more than they anticipated," says Barbara Stark, director of education and community development at American Debt Counseling in Sunrise, Fla. "People think, 'I'll deal with it later,' but then there's shock and panic when the January bills arrive and the cycle begins again."
Five members of the USA TODAY Shopper Panel are keeping us in the loop as they plan their purchases and buy gifts this holiday season, when many consumers say they're loosening the grip on their purse strings a bit. We're also checking with experts to see how they — and we — could shop smarter. There's still plenty of time to chart a new course (or at least stop shopping) this holiday season.
Four lessons based on the experiences of our shoppers
1Save money all year. LeLynda Briggs, 24, of New Orleans had $25 taken out of each paycheck all year for holiday gifts so she wouldn't wind up in debt for three months after the holidays like she did last season.
CAUTIOUS OPTIMISM: Holiday shopping series tracks 5 shoppers
VIDEO: Ways to save with online shopping
VIDEO: Haggling tips for getting holiday bargains
VIDEO: Tips for spotting counterfeit products
Stark put $10 in an envelope every week and used that as her holiday fund. "If it's out of my wallet, I forget I ever had it," she says.
Dawn Masters, 43, of Denver contributes to a "fun money" fund that will help pay for a Disney trip in the spring but also gets tapped for holiday purchases. She has $125 taken out of her account twice a month.
2Set a budget. Eason Adams, like Briggs, got hit with big bills from his holiday shopping early this year. So he set a budget of about $100 per person this year, even though he has a young son who still believes in Santa Claus.
"I don't really have much of a choice but to go by my budget, as I will not be putting any purchases on credit cards," says Adams, 31, a long-distance truck driver from Inez, Ky.
Marietta Landon, 31, of Douglasville, Ga., doesn't set a strict budget but sticks to about $100 a person for her small family. She says she has "never stressed out about it" or carried a credit card balance over to the next month.
Setting a budget "sounds so 'bah, humbug,' " says Manisha Thakor, co-author of a personal finance book for couples, Get Financially Naked. But it's something everyone should do, she says.
To stay in even closer touch with your budget — or to see if it needs adjusting — she recommends signing up for notifications if your bank balance hits a certain level and checking that balance at least weekly.
People "do not want to look at their financials," says Thakor. "But you need to understand exactly what you have left to work with."
3Keep track of purchases. While it's important to make a list of what you're buying, it's also critical to have a list of everything you've already bought. Tricia Richards, 46, of South Abington Township, Pa., says she's forgotten purchases in the past and fears she's guilty of it again this year.
"Of course, I've lost track of some things I've bought already," says Richards, a self-employed public relations person. "My biggest overbuying surprise has been the stocking stuffers and Advent calendar items. When something costs just a few bucks, it's so easy to rationalize another purchase."
To avoid that problem, Stark — who has two twentysomething sons — puts her holiday gift list on an Excel spreadsheet and carries it around in her wallet. She updates it as she buys things and makes a note of what she's spent.
"I could be done with my shopping, but I feel like I need to buy more," says Stark. "It takes a lot of self-control to stick to your list and stick to your budget."
Thakor says losing track of purchases is one of the most common problems she hears from people she counsels on personal finance through her work with the Women's Financial Literacy Initiative.
4Avoid credit cards if money is tight. Adams cut up his credit cards so he didn't get himself in debt again. Thakor says that's a smart move. She recommends anyone who knows he can't pay off his bill by the due date should use debit cards. She prefers debit cards over cash because it's easier to monitor what you spend.
Richards also steers toward debit cards, especially at the holidays: "I rarely slide a credit card out of my wallet."
According to the American Bankers Association, the average consumer takes six months to a year to pay off holiday debt. And it can take far longer: Stark notes someone who charges $1,220 on a credit card with an 18% interest rate and pays only the minimum payment each month would spend 11 years paying it off. The gifts would wind up costing more than $2,700.
Stark, who is done with her shopping, stayed on budget and didn't put anything on a credit card. "I'm so excited I feel like I have to buy myself a present," she says.
But she won't.
How some businesses are doing
L.L. Bean: Good times could be here again
Christmas may be more than two weeks away, but L.L. Bean CEO Chris McCormick can already say with confidence that the season will be the outdoors clothing and gear retailer's best since 2007.
People are spending more money and buying more items on each store or website visit. Order totals are running 6% higher than last year. "The trend is so clear: People are feeling more confident," McCormick says.
Last Monday turned out to be an even bigger day for sales than Cyber Monday, which set records for the Bean website. "Strong double-digit growth" over the same period last year is putting L.L. Bean well head of its forecast for a 2.3% increase over the 2009 holiday season.
Sporting equipment became an even bigger seller during the recession, McCormick says, and now higher-end products such as kayaks and bicycles are seeing sales boosts. Skis and snowshoes are "really taking off," he says.
Unlike many retailers, L.L. Bean adjusted its inventory for the disastrous 2008 holiday season so it didn't have to resort to deep discounting to move unsold items. Bean remains fairly non-promotional but did launch free shipping in August. The deal runs through the holidays with no minimum purchase requirement. That's seldom done in retailing.
McCormick says customers told the company they were "annoyed with shipping charges," so Bean decided it had little choice. The deal has boosted sales considerably but at so much cost, it's "at best a break-even," he says.
Discounters that have seen big sales increases during recessions have historically done well after recessions because they have an expanded customer base. The reverse can be true, too, McCormick says, and it helps higher-end companies such as L.L. Bean.
"People who have tried trading down in the past have realized you get what you pay for," McCormick says.
UncommonGoods.com: Pricier gifts are selling well
UncommonGoods.com didn't offer any Cyber Monday specials, but did such a brisk business on the Monday after Thanksgiving that it has raised its forecast for a holiday sales increase from "almost 15%" to "up to 20%."
The online and catalog retailer of environmentally friendly, quirky and otherwise creative gifts may have had a bumpy few first years in business after launching in 1999, but things are going smoothly now. The workforce more than doubled to keep up with calls, and packages are actually getting to consumers ahead of schedule.
Customer Brian Stewart e-mailed Uncommon Goods to say that he had "ordered many things from many — ahem — big retail websites on Cyber Monday, and my order from you was on my doorstep" while the other sites were "finally finished processing my orders and sending e-mails."
Along with many other bricks-and-mortar and online retailers, Uncommon Goods is finding pricier items are selling well — such as jewelry and $185 framed dog breed "blueprints."
And while electronics remain a hot seller at other retailers, an anti-electronics product is proving one of Uncommon Goods' top products. In the first two weeks they offered it last month, the company sold hundreds of the $15 "Phone Kerchief," a cloth embedded with silver fibers that will block calls to a mobile phone.
It's a way to show people "that they are more important to you than your device," says Uncommon Goods CEO David Bolotsky.
In October, the company overhauled its website only to see sales plummet. Now that the kinks — compatibility problems with browsers on some customers' computers — have been worked out, it's now running twice as fast as it did a year ago.
There were a few times when the site slowed down on Cyber Monday, but nothing like the problems some far bigger retailers have had in recent years during the post-Thanksgiving rush.
Friday, December 10, 2010
2011 Trends: Content Marketing Is Critical
Next year, marketers will need to rethink their approach to advertising and marketing and intensify their focus on creating magnetic content that will naturally attract consumers, rather than relying solely on the interruption model of advertising, which consumers are responding to less and less. Think pull vs. push.
Magnetic content can include anything created on behalf of a brand -- be it an ad, YouTube video, online game, Facebook page, Twitter promo or mobile app -- that consumers genuinely want to engage with and pass along to others. This content entertains, amuses, informs, serves a function or satisfies a consumer need. It's welcome instead of annoying or interruptive.
Marketers, especially those working in social media, have seen the proven value of branded content, sometimes also referred to as "earned media." Nearly three-quarters of US companies with a social media strategy used such content in their campaigns, making it the most common type of content used, according to a June 2010 study by King Fish Media, HubSpot and Junta42.
Creating effective, breakthrough advertising has always been a challenge for marketers, as well as for the agencies charged with the task. But the classic interruption-disruption model of advertising is moribund. Marketers should ask themselves five questions about the magnetic content they are seeking to create to determine whether it will be truly attractive to their audience:
(Source: Geoff Ramsey, CEO, eMarketer, 12/01/10)
Magnetic content can include anything created on behalf of a brand -- be it an ad, YouTube video, online game, Facebook page, Twitter promo or mobile app -- that consumers genuinely want to engage with and pass along to others. This content entertains, amuses, informs, serves a function or satisfies a consumer need. It's welcome instead of annoying or interruptive.
Marketers, especially those working in social media, have seen the proven value of branded content, sometimes also referred to as "earned media." Nearly three-quarters of US companies with a social media strategy used such content in their campaigns, making it the most common type of content used, according to a June 2010 study by King Fish Media, HubSpot and Junta42.
Creating effective, breakthrough advertising has always been a challenge for marketers, as well as for the agencies charged with the task. But the classic interruption-disruption model of advertising is moribund. Marketers should ask themselves five questions about the magnetic content they are seeking to create to determine whether it will be truly attractive to their audience:
- Is the content unique?
- Is the content useful?
- Is the content well executed?
- Is the content fun?
- Does the content make good use of the channel in which it appears (e.g., social, mobile, video)?
(Source: Geoff Ramsey, CEO, eMarketer, 12/01/10)
Thursday, December 9, 2010
If Your Target Audience is Teen Christmas Shoppers...
A recent AMP Insights Holiday Shopping Behavior survey looked at teens between the ages of 13 and 19, and came up with some interesting results regarding what they are buying, where they are buying, and what they would like to receive for Christmas.
Teens have deep pockets:
-- 49% are planning on spending over $150 on gifts for others this holiday season.
-- 20% are planning on spending over $300 on gifts for others this holiday season.
They're planning to give gifts to those closest to them:
-- 86% plan to give gifts to parents.
-- 75% plan to give gifts to siblings.
-- 74% plan to give gifts to friends.
-- 60% pan to give gifts to boyfriends and girlfriends.
Teens treat themselves when shopping for holiday gifts for others. Sixty-five percent say when shopping for gifts for others, they will sometimes shop for themselves if they happen to find something they need or want.
Finding the best deal is the number one priority for teens. Forty-five percent research a gift item to find the best deal before purchasing.
Though Apparel is ranked high on teens' wish lists, the Electronics and Entertainment categories are top choices:
-- 79% hope to receive gifts in the Electronics category.
-- 69% hope to receive gifts in the Entertainment category.
-- 61% hope to receive gifts in the Accessories category.
-- 47% hope to receive gifts in the Apparel category.
-- 46% hope to receive gifts in the Footwear category.
-- 32% hope to receive gifts in the Health and Beauty category.
Within the Electronics and Entertainment categories, teens want items for a fun experience:
-- 85% hope to receive video games.
-- 74% hope to receive movies.
-- 74% hope to receive music.
-- 64% hope to receive an iPod.
-- 59% hope to receive a laptop.
Big retail stores rise to the top for shopping:
-- GameStop, 62%
-- Wal-Mart, 60%
-- Best Buy, 57%
-- Target, 53%
-- Hot Topic, 46%
-- JC Penney, 45%
-- Macy's, 40%
-- Aeropostale, 37%
-- Apple, 37%
-- Hollister, 36%
(Source: The Center for Media Research, 11/30/10)
Teens have deep pockets:
-- 49% are planning on spending over $150 on gifts for others this holiday season.
-- 20% are planning on spending over $300 on gifts for others this holiday season.
They're planning to give gifts to those closest to them:
-- 86% plan to give gifts to parents.
-- 75% plan to give gifts to siblings.
-- 74% plan to give gifts to friends.
-- 60% pan to give gifts to boyfriends and girlfriends.
Teens treat themselves when shopping for holiday gifts for others. Sixty-five percent say when shopping for gifts for others, they will sometimes shop for themselves if they happen to find something they need or want.
Finding the best deal is the number one priority for teens. Forty-five percent research a gift item to find the best deal before purchasing.
Though Apparel is ranked high on teens' wish lists, the Electronics and Entertainment categories are top choices:
-- 79% hope to receive gifts in the Electronics category.
-- 69% hope to receive gifts in the Entertainment category.
-- 61% hope to receive gifts in the Accessories category.
-- 47% hope to receive gifts in the Apparel category.
-- 46% hope to receive gifts in the Footwear category.
-- 32% hope to receive gifts in the Health and Beauty category.
Within the Electronics and Entertainment categories, teens want items for a fun experience:
-- 85% hope to receive video games.
-- 74% hope to receive movies.
-- 74% hope to receive music.
-- 64% hope to receive an iPod.
-- 59% hope to receive a laptop.
Big retail stores rise to the top for shopping:
-- GameStop, 62%
-- Wal-Mart, 60%
-- Best Buy, 57%
-- Target, 53%
-- Hot Topic, 46%
-- JC Penney, 45%
-- Macy's, 40%
-- Aeropostale, 37%
-- Apple, 37%
-- Hollister, 36%
(Source: The Center for Media Research, 11/30/10)
Consumers Are Buying For Themselves This Christmas
Consumers are adding a very important name back to their holiday shopping lists this year: their own.
The percentage of shoppers who say they plan to indulge in a little something extra for themselves has risen four points since last year to more than 57 percent -- the biggest jump in at least six years, according to an industry survey. Sales of jewelry, apparel and consumer electronics are up so far this holiday season from last year, and experts attribute part of the boost to what has become known as "self-gifting."
You didn't think Dad was going to give that 50-inch flat-panel TV to someone else, did you?
"The consumer really is sitting there saying, 'I'm going to take advantage of these deals,' " said Marshal Cohen, senior analyst for NPD Group, a consumer research firm. "This consumer is saying that there really is some pent-up demand."
During the nation's economic downturn, consumers saved money by whittling down their Christmas lists. Spending on gifts for babysitters, co-workers and teachers were slashed, and, in the ultimate act of self-sacrifice, shoppers cut back on themselves.
According to the National Retail Federation, the number of self-gifting shoppers began to fall in 2007 -- the year the recession began -- after steadily increasing for several holiday seasons. Though the number ticked up in 2008, it plunged last year to under 53 percent of shoppers. The amount they intended to spend last year also fell nearly 5 percent to $101.37.
This year, both measures have rebounded along with consumer confidence. And shoppers reported plans to spend an average of $107.50 this Christmas on themselves, the NRF said.
"The economy is picking up a little bit," said Lisa Bennett, as she sipped a Bellini on a recent evening at a cocktail party at Bliss Spa in downtown Washington, D.C. for its top customers.
Bennett said the sense that the recovery is on track made her feel a little less guilty about spending $200 online at Ann Taylor for herself while she was scouring the Internet for gifts for her teen cousins. They got Best Buy gift certificates and J. Crew sweaters; she got two new tops and a dress and then booked an oxygen facial for herself at the spa.
General manager Michelle Caron said customers are not only booking "maintenance" appointments -- the manicures and waxing counted as necessities among some women -- but also reserving more indulgent services such as facials and massages. This holiday, the spa launched a new service dubbed Shopper's Delight, a lower leg massage and exfoliating treatment for $70.
"We've only been getting busier and busier," Caron said.
Industry experts say the return of self-gifting is a telling indicator of consumer health. Over the past two years, as consumers have grappled with high unemployment, falling home prices and a volatile stock market, spending was primarily driven by necessity. Retailers that sold staples such as groceries held up better during the recession than those that stocked discretionary items.
But if shoppers are now willing to buy for themselves, that could mean the big freeze on consumer spending is starting to thaw.
Cohen said self-gifting helped drive the strong sales and shopper traffic over the post-Thanksgiving weekend. His research showed 35 percent of shoppers bought something for themselves, more than he expected.
Self-gifting could also prove lucrative for retailers because it rarely occurs by itself, Cohen said. Shoppers may reward themselves after spending on others or, on the flip side, justify their own purchases by buying a few gifts.
"It's like it becomes a fever," he said. "For every self-gifted item, there's generally another item that gets added to the assortment as well."
At Fair Oaks Mall in the Washington, D.C. area, general manager Robbie Stark said self-shopping dominated the Black Friday weekend, including one four-hour line of teen boys waiting to buy $10 T-shirts at Elite Board Shop, which sells skateboard gear. He said retailers welcome the business to pad holiday sales.
"The more self-buying that goes on, that's good because they're still going to get the gift-buying," he said.
Still, New England Consulting Group founder and chief executive Gary Stibel said any increase in self-gifting is incremental at best. Shoppers put their kids first and their pets second, he said. Parents and spouses take the back seats, leaving only a tiny portion of discretionary income left over for personal indulgences.
"She's trying to take care of everybody, but she more often than not puts herself last," Stibel said of the typical female shopper. "She's too damn conscientious for her own good."
So which actually makes us happier: self-sacrifice or self-indulgence? A study by Harvard Business School associate professor Michael Norton and two colleagues from the University of British Columbia in 2008 examined whether shoppers derived greater pleasure from spending on themselves or on others.
The researchers gave up to $20 away to shoppers with instructions to spend it on themselves or on other people -- perhaps through a gift for a friend or a donation to a homeless shelter. Though most people expected to enjoy keeping the money, Norton said that at the end of the day, those who bought for someone else reported feeling significantly happier.
Of course, devoting a day of shopping for someone else is one thing. But the holiday shopping season is two full months of making a list, checking it twice, then trying to balance your checkbook. Norton said his research did not examine whether the drawn-out process of gift-giving can overwhelm the joy of giving, but he is clearly no Grinch.
"In the moment of giving," he said, "it's still nice to have given a gift to someone."
(Source: The Washington Post, 12/06/10)
The percentage of shoppers who say they plan to indulge in a little something extra for themselves has risen four points since last year to more than 57 percent -- the biggest jump in at least six years, according to an industry survey. Sales of jewelry, apparel and consumer electronics are up so far this holiday season from last year, and experts attribute part of the boost to what has become known as "self-gifting."
You didn't think Dad was going to give that 50-inch flat-panel TV to someone else, did you?
"The consumer really is sitting there saying, 'I'm going to take advantage of these deals,' " said Marshal Cohen, senior analyst for NPD Group, a consumer research firm. "This consumer is saying that there really is some pent-up demand."
During the nation's economic downturn, consumers saved money by whittling down their Christmas lists. Spending on gifts for babysitters, co-workers and teachers were slashed, and, in the ultimate act of self-sacrifice, shoppers cut back on themselves.
According to the National Retail Federation, the number of self-gifting shoppers began to fall in 2007 -- the year the recession began -- after steadily increasing for several holiday seasons. Though the number ticked up in 2008, it plunged last year to under 53 percent of shoppers. The amount they intended to spend last year also fell nearly 5 percent to $101.37.
This year, both measures have rebounded along with consumer confidence. And shoppers reported plans to spend an average of $107.50 this Christmas on themselves, the NRF said.
"The economy is picking up a little bit," said Lisa Bennett, as she sipped a Bellini on a recent evening at a cocktail party at Bliss Spa in downtown Washington, D.C. for its top customers.
Bennett said the sense that the recovery is on track made her feel a little less guilty about spending $200 online at Ann Taylor for herself while she was scouring the Internet for gifts for her teen cousins. They got Best Buy gift certificates and J. Crew sweaters; she got two new tops and a dress and then booked an oxygen facial for herself at the spa.
General manager Michelle Caron said customers are not only booking "maintenance" appointments -- the manicures and waxing counted as necessities among some women -- but also reserving more indulgent services such as facials and massages. This holiday, the spa launched a new service dubbed Shopper's Delight, a lower leg massage and exfoliating treatment for $70.
"We've only been getting busier and busier," Caron said.
Industry experts say the return of self-gifting is a telling indicator of consumer health. Over the past two years, as consumers have grappled with high unemployment, falling home prices and a volatile stock market, spending was primarily driven by necessity. Retailers that sold staples such as groceries held up better during the recession than those that stocked discretionary items.
But if shoppers are now willing to buy for themselves, that could mean the big freeze on consumer spending is starting to thaw.
Cohen said self-gifting helped drive the strong sales and shopper traffic over the post-Thanksgiving weekend. His research showed 35 percent of shoppers bought something for themselves, more than he expected.
Self-gifting could also prove lucrative for retailers because it rarely occurs by itself, Cohen said. Shoppers may reward themselves after spending on others or, on the flip side, justify their own purchases by buying a few gifts.
"It's like it becomes a fever," he said. "For every self-gifted item, there's generally another item that gets added to the assortment as well."
At Fair Oaks Mall in the Washington, D.C. area, general manager Robbie Stark said self-shopping dominated the Black Friday weekend, including one four-hour line of teen boys waiting to buy $10 T-shirts at Elite Board Shop, which sells skateboard gear. He said retailers welcome the business to pad holiday sales.
"The more self-buying that goes on, that's good because they're still going to get the gift-buying," he said.
Still, New England Consulting Group founder and chief executive Gary Stibel said any increase in self-gifting is incremental at best. Shoppers put their kids first and their pets second, he said. Parents and spouses take the back seats, leaving only a tiny portion of discretionary income left over for personal indulgences.
"She's trying to take care of everybody, but she more often than not puts herself last," Stibel said of the typical female shopper. "She's too damn conscientious for her own good."
So which actually makes us happier: self-sacrifice or self-indulgence? A study by Harvard Business School associate professor Michael Norton and two colleagues from the University of British Columbia in 2008 examined whether shoppers derived greater pleasure from spending on themselves or on others.
The researchers gave up to $20 away to shoppers with instructions to spend it on themselves or on other people -- perhaps through a gift for a friend or a donation to a homeless shelter. Though most people expected to enjoy keeping the money, Norton said that at the end of the day, those who bought for someone else reported feeling significantly happier.
Of course, devoting a day of shopping for someone else is one thing. But the holiday shopping season is two full months of making a list, checking it twice, then trying to balance your checkbook. Norton said his research did not examine whether the drawn-out process of gift-giving can overwhelm the joy of giving, but he is clearly no Grinch.
"In the moment of giving," he said, "it's still nice to have given a gift to someone."
(Source: The Washington Post, 12/06/10)
Subscribe to:
Posts (Atom)