NRF: Consumers will be ‘thoughtful’ shoppers

New York--This holiday season, consumers are expected to continue to spend their money cautiously and will expect thoughtful and knowledgeable customer service when they do choose to go into a store, the National Retail Federation (NRF) said in a recent conference call.

NRF Senior Director Kathy Grannis and Pam Goodfellow, consumer insights director at Prosper Insights & Analytics (formerly BIGinsight), held a conference call Oct. 29 for journalists giving additional insight into their 2013 holiday consumer spending survey.

The NRF expects overall holiday spending to increase 4 percent as compared with 2012. The individual average spent on gifts, however, is expected to decline from $550 to $536. “We are going to continue to see a very thoughtful consumer when it comes to spending their money on gifts for others,” Grannis said.

Here are a few highlights from the call.

--“One for you, one for me.” Grannis said self-purchasing during the holidays has increased in recent years because of the discounts retailers have been offering. The trend will continue this year though not quite at the same pace as 2012.

According to the NRF, 57 percent of consumers will buy something for themselves this holiday season, spending an average of $130, down slightly from 59 percent in 2012. “It looks like there’s still a chance for the ‘one for you, one for me’ mindset,” she said.

--Consumers are in a practical state of mind. A total of 29 percent of consumers surveyed said they would opt for more practical items this holiday season, up slightly from 27 percent last year. In addition, 14 percent said they planned to make their holiday gifts, up from 13 percent in 2012.

Goodfellow said while practical presents will be popular, they expect consumers to invest in a few special items to place under the tree as well. “I don’t think it’s all going to be coats and socks and those kinds of mundane gifts,” she said.

She noted that gifts cards remain the No. 1 most desired item among consumers surveyed.

--Sales are important, but they aren’t everything. Price and sales are paramount when consumers are picking the place where they want to spend their money, but lowest price is no longer their sole consideration.

Receiving helpful and knowledgeable consumer service will be even more important than it was last year in attracting consumers to a store, according to the NRF.