LOS ANGELES, Nov. 15, 2012 /PRNewswire/ --
Deloitte annual holiday survey highlights:
Among Los Angeles consumers surveyed:
- 56 percent expect the economy to improve in 2013, up from 31 percent last year
- Shoppers plan to decrease overall holiday budgets by 12 percent to $1,485
- Gift cards and cash are the top two gifts Los Angeles consumers want to receive, but clothing is the most popular gift to give
- Discount stores and the Internet are the top two shopping destinations in Los Angeles: 47 percent intend to shop online, 39 percent of consumers plan to purchase gifts at discount stores
- 36 percent of shoppers expect store associates to match prices
- 28 percent expect to shop on "Black Friday"
- 28 percent of respondents plan to do some of their holiday shopping after Christmas Day
Los Angeles shoppers are more optimistic about the economic outlook, but are still cautious when it comes to holiday spending, according to Deloitte's 27th annual survey of holiday spending intentions and trends.
More than half (56 percent) of Los Angeles consumers surveyed expect the economy will improve next year, up from just one-third (31 percent) heading into the holiday season last year.
However, local shoppers plan to decrease their overall holiday spending by about 12 percent, which is almost double the national average of a 6 percent decrease. Consumers plan to spend $1,485 in 2012 compared to $1,688 in 2011. The most drastic spending cut backs will come in the areas of socializing away from home ($381 in 2012 compared to $481 in 2011) and home and holiday furnishings ($170 in 2012 compared to $226 in 2011).
"Retailers have a reason to celebrate and be hopeful for the future as we see signs that consumers' outlooks are improving," said Jackie Fernandez, partner, Deloitte & Touche LLP, serving the retail & distribution sector. "However our survey shows that higher gas prices, lingering concerns about the economy, as well as a focus on improving personal finances are tempering the spending plans for some Los Angeles shoppers."
"Even though their budgets are a little tighter than last year, Los Angeles shoppers still plan to spend a significant amount during the holidays," continued Fernandez. "In fact, Los Angeles is a close second only to New York City in terms of total planned spending."
Los Angeles will keep Santa's workshop busy – gift giving is expected to be slightly up this year
Although shoppers may spend less overall this holiday season, they do not plan to cut back on gift giving to friends, family and loved ones. Consumers plan to spend $430 on an average of 12.6 gifts in 2012, compared to $411 on an average of 12.9 gifts in 2011.
The most popular gifts to give include clothing (52 percent), gift cards/gift certificates (43 percent), books (36 percent) and electronics (35 percent).
Consumers hope to receive gifts that fit right into their wallets. Topping the list of items local shoppers wish to receive are gift cards/gift certificates (42 percent) and cash (42 percent).
"Omnichannel" shoppers could bring retailers the most holiday cheer
Average gift spend among consumers surveyed who plan to hit the Internet, their smartphones and stores this holiday season is $604 compared to $338 for those who plan to spend only in stores, representing a significant opportunity for retailers.
"Retailers need to keep promotions fresh throughout the season, particularly in a presidential election year which can cause uncertainty for consumers in the early days of the shopping season," said Fernandez. "Now that the results of the presidential election are in, retailers can play to their digital channels' strengths to precisely target customers with updated, fine-tuned and fresh promotions."
Los Angeles Consumers Will Shop Throughout the Holiday Season…and Beyond
Although the shopping season will be longer this year with five weekends between Thanksgiving and Christmas, shoppers do not expect to lose steam as the season wears on. Nearly 3 in 10 (28 percent) of Los Angeles respondents expect to participate in Black Friday shopping, though the majority of their purchases will come later. Almost 6 in 10 (59 percent) plan to shop in December, and 14 percent of shoppers say they will do some holiday shopping in January.
For more information about Deloitte's annual holiday survey, including additional statistics, historical data and useful links, please visit http://www.deloitte.com/us/2012HolidaySurvey.
About the Survey
The survey was commissioned by Deloitte and conducted online by an independent research company between September 14 and 24, 2012. The survey polled a sample of 5,089 consumers, with a Los Angeles sample size of 500 and has a margin of error for the entire sample of plus or minus one percentage point.
About Deloitte's Retail & Distribution Practice
Deloitte is a leading presence in the retail and distribution industry, providing audit, consulting, risk management, financial advisory and tax services to 80 percent of the Fortune 500 retailers. With more than 1,400 professionals, Deloitte's retail & distribution practice provides insights, services and solutions assisting retailers across major subsectors including apparel, grocery, food and drug, wholesale and distribution and online. For more information about Deloitte's retail & distribution sector, please visit www.deloitte.com/us/retail-distribution.
As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.