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NPD: Consumers Expect to Spend Less This Holiday Season

7 Oct, 2010 By: Erik Gruenwedel



The requisite fourth quarter surge during the winter holidays could disappoint with projected consumer spending on consumer electronics and entertainment to decline, according to a holiday survey conducted by The NPD Group.

Specifically, the research group found that among the top 10 items consumers plan to purchase this holiday season, 24% said they planned to purchase a DVD or Blu-ray Disc movie, compared with 29% who planned to purchase packaged media last year.

Consumers likely to purchase HDTVs, Blu-ray players, home theater systems, cell phones and laptops, among other CE products, fell to 16% from 24%. Video games and gaming systems declined to 15% from 20%.

Specifically, the research group found that among the top 10 items consumers plan to purchase this holiday season, DVD and Blu-ray Disc movies ranked 24%, compared with 29% last year.

Likely purchases of HDTVs, Blu-ray players, home theater systems, cell phones and laptops, among others, fell to 16% from 24%. Video games and gaming systems declined to 15% from 20%.

“Even though the recession is technically over, lingering concerns are keeping consumers in a cautious frame of mind,” said Marshal Cohen, chief industry analyst, The NPD Group. “We are seeing what I call ‘calculated consumption.’ and I believe that it is a consumer mind-set that will be around after holiday shopping is over.”

Indeed, the majority of respondents said they plan to spend about the same as last year, 61% this year, up 2% from last year. About one-third of survey respondents say they plan to spend less, which is the same as last year; and only 9% say they plan to spend more, down 2% from 2009.

Separately, the National Retail Federation said overall consumer spending during the holidays would increase 2.3% from last year.
 


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