Cash and debit cards are apparently in and credit cards are out this Christmas season.
One quarter of Christmas shoppers will pay for gifts this year with cash, a 9.1% increase from last year’s 22.8%, according to a National Retail Federation survey conducted by BIGresearch.
Also, 42.5% of shoppers plan to pay primarily with debit or check cards, a 2.5% increase from last year, the NRF reported.
The number of shoppers who will rely on credit cards is expected to fall 10.1%, with 28.3% of people using credit this year compared to 31.5% a year ago, the NRF reported. Just four percent of Christmas shoppers plan to pay for most gifts with personal checks, according to the NRF.
“With many [Christmas] shoppers focused on spending within their limits, it’s no surprise that fewer people will be relying on credit cards this year,” said Tracy Mullin, President and CEO of the NRF, in a statement. “If the strong promotions and sales we’ve seen the last few weeks are any indication of what retailers are planning, shopping on a budget this year will not be a problem.”
Shoppers also are apparently not yet flocking to stores.
According to the NRF, 52.4% of consumers have not yet begun their Christmas shopping, and 21.2% said they have completed less than one-tenth of their list.
“While many retailers are already aggressively promoting popular [Christmas] gift items, Black Friday might be the tipping point for shoppers this year,” said Phil Rist, executive vice president, strategic initiatives, BIGresearch, in a statement. “Many shoppers are anxiously anticipating the deals and bargains that retailers will unveil in the days after Thanksgiving.”
