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)
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