The reelection of President George W. Bush is expected to have a positive impact on holiday gift spending, including gift cards.
Before the election, consumers were expected to increase their spending this holiday season by 4.5%, a number that jumped to 5.6% after the election, according to a survey conduced by Unity Marketing, Stevens, PA.
With the increase, spending will rise to $678 this year from $648 for consumers overall.
“The reelection of President Bush will be very good for gift shopping this year,” said Pam Danziger, president of Unity Marketing, in a statement. “Shoppers’ psychology got a boost once the campaign was over.”
Topping the holiday shopping list is entertainment and/or recreational goods with electronic entertainment equipment and entertainment media reining as must-have items. Next on the list is clothing, fashion accessories, jewelry and watches. Store gift certificates will get the biggest boost in giving. Last year about 53% of those buying gifts gave a gift certificate, a number expected to jump to 63% this year. Expect to see lots of retailers combining the sale of the certificates with upsells such as a box of chocolates.
“Consumers feel better than they did a month ago thanks to the closure of knowing who our president is for the next four years,” Danziger said. “That will translate into more generous gift giving this holiday season, especially among consumers identified as ‘serious’ gifters, or those who spent $250 or more through October on gifts.”
Unity identifies the “serious” gifter as most likely to be a woman, aged 25-54, with an average household income topping $50,000.
With Americans fighting an abundance of clutter around their homes, expect to see only 40% of gifters buy something for the home this year, compared to 48% last year.
Rising on the gift giver’s radar screen are spa treatments, dinner out and tickets to the opera.
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