Greater Philadelphia Region Shoppers in 'Gift Giving Mood' For Holidays

PHILADELPHIA, Nov. 22, 2010 /PRNewswire/ -- Philadelphia shoppers are expecting to spend more money on gifts this holiday season and purchase a greater number of gifts, as compared to the national average, according to Deloitte's 25th Annual Holiday Survey of retail spending and trends. Shoppers in the Greater Philadelphia Region plan on spending 49 percent ($530) of their total holiday spending on gifts, compared to the national average of shoppers expecting to spend 40 percent ($466) of their total holiday spending on gifts. Shoppers in the Greater Philadelphia Region expect to purchase an average of 18.6 gifts this holiday season, compared to the national average of 16.8 gifts.

Nearly three-quarters (71 percent) of respondents in the Greater Philadelphia Region indicate that online research will influence their holiday purchases and 72 percent of respondents expect to spend some of their holiday budget on Internet purchases. The Internet (where 35 percent of consumers are expecting to shop) is the second most popular retail venue for holiday gift shopping behind discount department stores (where 58 percent of consumers are expecting to shop).

Shoppers in the Greater Philadelphia Region also plan to use smartphones, as more than one in 10 (11 percent) plan to use smartphones in the holiday shopping process to check and compare prices, retrieve store locations, obtain product information, shop and browse online or read product reviews.  More than one in 10 (11 percent) of consumers will turn to social networks for information such as gift ideas and coupons, discounts and sales, product reviews, or to post comments and share links on stores and sales this holiday season.  

"Philadelphians appear to be embracing the spirit of holiday giving this year," said Tara L. Weiner, managing partner, Greater Philadelphia Region, Deloitte LLP. "But before they choose their gifts, shoppers are looking to the Internet, social media and mobile phones to aid them in researching and making their gift decisions. Retailers that can help empower these connected consumers with products and service across the various channels will likely better educate, attract and engage shoppers this holiday season."

Additional findings from the survey include:

-- Holiday Spending: Philadelphia consumers' total anticipated holiday spend is $1,091, compared to the national average of $1,160. While Philadelphians' expect to spend more than the national average on gift-related items this year, spending on the non-gift items, such as home and holiday furnishings, non-gift clothing, social events outside the home and entertaining at home (51 percent of total holiday spending) is lower than the national average (60 percent of total holiday spending).  More than half (59 percent) of consumers in the Greater Philadelphia Region plan on spending the same or more money this year on the holidays.

-- Effects of the Economy—the Conflicted Consumer: Almost two-thirds (63 percent) of consumers in the Greater Philadelphia Region indicate their financial situation is the same or better compared with last year at this time. However, Philadelphia consumers hold a conservative outlook on the U.S. economy, with 39 percent of those surveyed expecting the economy to improve next year.

Many Philadelphians maintain a careful approach to spending and have changed their shopping patterns due to economic concerns over the past year. More than one-third (39 percent) said they have permanently cut back the amount of money they spend shopping and will not go back to spending as much as they did before the recession.

-- Method of Shopping: Continuing in their search for value, 74 percent of Philadelphians say they will likely change the way they shop during the holiday season in an effort to save money. New shopping strategies include:  buying more items on sale (79 percent), using more store coupons (54 percent), buying more lower-priced items (54 percent), looking for free shipping offers (46 percent) and preparing a list to prevent overspending (45 percent).

-- Top 5 Gifts – Gift Certificates/Cards are the Choice: Gift certificates/cards are the top choice for shoppers in 2010, with 61 percent of consumers in the Greater Philadelphia Region planning to buy them as presents, five percentage points more than the national average.  Consumers in the Greater Philadelphia Region plan on purchasing an average of 5.5 gift cards, compared to the national average of five gift cards. Consumers' planned spending per gift card ($30) is below the national average ($31), and Philadelphia consumers prefer to receive gift cards (48 percent) more than the national average (44 percent).

Clothing as a gift category ranked second with 54 percent of consumers in Greater Philadelphia Region planning to buy clothes as gifts (compared to 50 percent nationally). Money (35 percent, compared to 32 percent nationally) was followed by toys and games (34 percent) and CDs and DVDs (32 percent) as top gift categories.

"The recession and slow recovery appear to have led consumers in the Greater Philadelphia Region to create a 'new normal' shopping attitude, where they seek more value and more deals," said Weiner. "Even though many shoppers this year are expecting to spend more on the holidays, they are still ever-cautious of over-spending."

About the Survey

The survey was commissioned by Deloitte and conducted online by an independent research company between September 23 and October 10, 2010. The survey polled a sample of 12,418 consumers nationally with a Greater Philadelphia Region sample size of 507. 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/2010HolidaySurvey.

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

SOURCE Deloitte