Holiday Spending Less, But Home Entertainment Ranks High14 Oct, 2008 By: Kyra Kudick
With the recent turmoil in the financial markets and talk of budgeting and belt-tightening for hard times ahead, it should come as no surprise that consumers are cautious about holiday spending.
According to The NPD Group’s annual survey of consumers’ holiday spending intentions, 26% of consumers said they plan to spend less this year, compared to 18% in 2007.
“This 8% decline illustrates that consumers are already focused on the idea of spending less,” said Marshal Cohen, chief industry analyst for The NPD Group Inc.
And while this may be bad news for retail in general, there is some hope for the home entertainment industry as consumers rank home entertainment in the top 10 items they plan to purchase as a gift, with DVD ranked at No.3 (29%), electronics at No. 5 (23%) and video games at No. 6 (22%).
Cohen also predicts many consumers may be considering a new digital TV as a holiday purchase this year due to the analog to digital conversion.
“With prices at all time lows and not wanting to deal with signal conversion boxes, we could see some good news here,” he said.