Melanie Shuey hasn?t started her holiday shopping yet, but she anticipates spending less than she has in previous years.
Her family decided to limit the gift-giving to just the children, so Shuey will be busy buying clothes and toys. But she understands why others might want to scale back their holiday budget.
“Everything?s getting so expensive, and the value of the dollar is decreasing,” Shuey said Monday as she walked through The Gallery in Baltimore. “I still enjoy the process of shopping and picking things out for people, but it can be stressful.”
Several retail groups have already predicted that a softening economy will cause this holiday shopping season to be one of the slowest in recent memory. Now, some consumer surveys have shown that more holiday shoppers plan to spend less this year.
Malls and department stores, though, are aggressively marketing the holiday shopping season, with numerous giveaways and discounts planned for Black Friday.
“Holiday shopping is still a major event,” said Jessica Bloom, manager of the White Marsh Mall and Owings Mills Mall. “What drives the shopper, it?s sort of the thrill of the hunt.”
About 35 percent of consumers intend to spend less on holiday shopping than they did last year, according to a survey conducted by the Consumer Federation of America and the Credit Union National Association. Rising costs of gasoline, home heating and gifts were the main influences on decreased spending.
The percentage of low-spending consumers was the highest in the eight years the survey has been conducted, and the number increased from 32 percent last year.
According to an International Council of Shopping Centers survey, 27 percent of shoppers plan to spend less on gifts and other holiday expenditures than they did last year. On average, survey respondents said they would spend $1,116 this season on gifts, entertaining, travel and decorations.
Both surveys reported consumers will look for values while low-income households ($25,000 to $50,000) will be very cautious with their spending.
Mac and Laura Lundy, who took a break from shopping at the Starbucks in The Gallery, both have their reasons for spending less than usual this holiday season, but they?re not pointing to a soft economy.
Mac Lundy says he?ll spend less because of law school tuition. Laura Lundy said she just wants to take a year off from buying gifts.
“I keep hearing that people aren?t spending money,” Laura Lundy said. “I keep hearing stores and places aren?t going to make their projections.”
Staff Writer Aaron Cahall contributed to this article.
WHY SPEND MORE?
Of the households that plan to spend more this holiday season than last year:
» 50 percent said they have a new job or more income.
» 49 percent said they have more people to shop for.
» 40 percent said they plan to buy more expensive gifts.
Source: International Council of Shopping Centers
