Despite retailers’ efforts to jumpstart holiday sales, people plan to start shopping later this year and impulse buying is expected to drop, according to a recent survey by The NPD Group.
Some 41% of people don’t plan to start their holiday shopping until after Thanksgiving. That’s a 10% increase compared to 2006, according to The NPD Holiday Survey of Consumer Purchase Intentions.
Meanwhile, retailers are setting up their stores with holiday-themed merchandise even earlier than usual, with some starting in the middle of August to sway purchases. But shoppers are complaining there are no incentives to shop early when the discounts come later, the survey said.
What will they buy?
Some 54% of people said they plan to buy clothing compared to 59% last year. One noticeable dip is in electronics: 38% said they plan to buy items in the category versus 51% last year.
Spending on toys, books, music and fragrance categories will be relatively flat compared to last year, the survey found.
Some 5% of people said they plan to spend less this holiday. Yet, retailers are still counting on impulse purchases to keep registers ringing. In previous years, impulse purchases accounted for 26% of holiday sales. In 2006, that number dropped to 19%, and for 2007, it’s expected to dip further to 17%.
“Stores and brands need to reclaim and becomes drivers of impulse,” said Marshal Cohen. NPD’s chief industry expert, in a statement. “They need to identify or even create a hot product or products.”
Gift cards and online shopping are contributing to the decline of impulse purchases. Some 39% of people said they plan to buy a gift card this year.
The study surveyed 1,943 people between Sept. 10 and Sept. 17 in an online consumer panel.
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