Deloitte's 24th Annual Holiday Survey Shows Texans Plan to Spend 21 Percent More Than National Average

HOUSTON, Nov. 19 /PRNewswire/ -- As the holiday season kicks off, Texans' optimism about the economy indicates that their holiday spending could top national levels, according to Deloitte's 24th Annual Holiday Survey of retail spending and trends.

Fears about the recession are slowly subsiding, with more than half of Texans surveyed (55 percent) saying they expect the economy will improve in 2010, compared with 27 percent who responded favorably last year. The positive outlook is reflected in their shopping plans as well. More than half of Texas consumers (55 percent) hope to spend more or the same on the holidays, an improvement from 43 percent last year. Specifically, the survey revealed that Texans' total anticipated holiday spend is $1,380, or 21 percent higher than the national average of $1,145.

Non-gift spending is up significantly across the four categories measured by the Deloitte survey: home/holiday furnishings, socializing away from home, entertaining at home, and non-gift clothing. Despite expectations for economic improvement, consumers continue to reduce their spending on gifts. The average number of gifts Texans plan to purchase declined to 19.9 from 24.9 in 2008, and gift spending is down seven percent to $464 compared with $498 last year.

"Texans appear poised to remove -- at least temporarily -- the padlocks from their wallets and embrace the spirit of holiday spending this year," said Sherrie McAvoy, partner, Deloitte & Touche LLP. "Consumers throughout the state feel more confident in the economy overall, and with economic indicators easing from their worst levels over the past few months, we expect to see some pent-up demand manifesting itself in the form of more spending in stores this season."

Texas consumers are still cautious when it comes to purchasing behavior, as nearly seven in 10 (69 percent) plan to shop differently due to concerns about the economy. These shoppers demonstrated a focus on frugality in their intentions to buy items on sale (75 percent), buy lower-priced items (54 percent) and use more store coupons (52 percent).

Among the 45 percent of Texans who plan to spend less this holiday season, worries over job loss and pay reduction rose sharply, more than doubling to 42 percent from 17 percent in 2008. Concerns about higher food and energy prices, stock market volatility and an overall concern about the economy have shifted downward, averaging a 17.5 percentage point drop from 2008. Texans see themselves in relatively better shape when it comes to real estate as only eight percent cited declining home values as a reason for spending less, compared to 13 percent nationwide.

Discount Stores Still Top Destination; Gift Cards Remain Top Gift

Discount stores continue to hold the top spot as a shopping destination with more than six in 10 respondents (61 percent) saying they expect to shop at discount/value department stores. Texans are also more likely than the rest of the country to shop online as 50 percent plan to use the Internet for shopping, compared with 42 percent of respondents nationally.

Gift cards hold the first-place position for the sixth year in a row, with two in three Texas consumers (67 percent) planning to buy them as presents. The number of gift cards they plan to purchase grew to 6.3 from 5.8 last year.

Technology-related gifts -- including game consoles, computer and video games, home, personal, and automotive electronics -- continued to grow in popularity. Computer and video games lead the pack with 30 percent (up from 22 percent in 2008) of consumers planning to purchase these items, followed by home electronics at 18 percent (up from 11 percent in 2008) and game consoles at 14 percent (up from nine percent in 2008), with personal electronics holding steady at 16 percent.

Texans Relying Less on Credit

Three in four Texas consumers plan to pay for purchases using cash, checks or debit cards, compared to 65 percent nationwide. Fewer than one in four (23 percent) Texans will use credit cards, seven percentage points lower than the national average.

Leveraging Technology to Save Money

The popularity of new technologies may be a bright side for retailers this year. Twenty-two percent of Texas respondents plan to use social media sites (compared to 17 percent nationwide) and 23 percent will use their mobile phones while shopping to find store locations, obtain coupons and sales information, research products and prices, and share their own wish lists.

About the Survey

The survey was commissioned by Deloitte and conducted online by an independent research company between September 24 and October 2, 2009. The survey polled a sample of 10,878 consumers nationwide including 517 respondents in Texas. The national survey has a margin of error for the entire sample of plus or minus one percentage point.

For more information about Deloitte's Annual Holiday Survey, including interesting statistics, historical data, and useful links, please visit www.deloitte.com/us/2009HolidaySurvey.

About Deloitte

As used in this document, "Deloitte" means Deloitte LLP and Deloitte Services LP, a separate subsidiary of Deloitte LLP. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

SOURCE Deloitte

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