Holiday Spending in the U.S.: Spending on Gifts and Charity

Americans love to celebrate and holidays create a reason to rejoice and reflect and spend time with loved ones. Along the way, an estimated $133.6 billion will be spent on festivities in 2008, across the six largest holiday spending occasions. While Americans love to spend all year round, holidays give people a reason to shop and to celebrate. For many shoppers, the Winter Holidays represent their major annual spree and in 2008 it is estimated that 58% of holiday spending dollars will be attributed to Christmas, Hanukah and Kwanza.

Holiday Spending in the U.S. covers spending for Winter Holidays (Christmas, Hanukkah, and Kwanza) Valentine’s Day, Easter, Mother’s Day, Father’s Day, and Halloween. Trends in consumer spending and gift giving are discussed throughout this report, and for that reason, non-gift giving occasions such as Thanksgiving and July Fourth are excluded, whereas Halloween, because of its marked growth in popularity and consumer spending, is included.

Because they are a reflection of how Americans choose to spend their money in terms of broader causes, contributions to charity are also reviewed.

Sources and Methodology

Holiday spending estimates were compiled from more than 10 sources that released holiday spending projections. These include the Conference Board, the International Council of Shopping Centers, BIGresearch, and the Consumer Electronics Association. These sources were benchmarked against each other, and compared to retail sales during the holiday periods under review.

What You’ll Get in this Report

What’s Covered

• Holiday spending figures for gifts and other spending (décor, food candy, cards, plants and flowers) are quantified by holiday for 2004-2008. Spending figures are made up of three components, the number of households, the percentage of households participating, and the average expenditure per household.
  
  
• Key drivers in holiday spending, the role of economic conditions in participation and retail spending
  
  
• Trends in spending by holiday are identified for each holiday. Holiday spending by channel is trended for major retail channels, including department stores, discount department stores, grocery stores, drug stores, warehouse and club stores, toy specialty stores, and specialty electronics retailers. A comprehensive review of the online channel is also provided.
  
  
• The holiday spending consumer is analyzed; who spends the most and who is the most generous. The role of the economy in consumer indecision and procrastination is revealed as are tips for the retail channel to adapt to the shrinking window for Winter Holiday shopping.
  
  
• A review of trends in retail formats is provided, from traditional malls, to lifestyle centers, kiosks and automated stores.
  
  
• Where the market is going, forecasts for holiday spending through 2012 by year and by holiday. ``Green marketing,” pet indulgence, personalized gifts and gifts of experience trends are also explored.

Tourism Industry in the United States

Chapter 1: Executive Summary

Report Methodology

Market Size and Growth

Definition

Consumer Spending - Overview

Conscientious spenders

Winter Holidays will Account for 58% of Holiday Spending Dollars in 2008

Figure 1-1: Holiday Spending by Occasion, 2008

Table 1-1: Holiday Spending by Occasion, 2004-2008 (million $)

Why is Winter Holiday spending declining?

Many Factors Point to Lowered Spending on Winter Holidays

Impulse spending weakens

Spending Less on Others is a Trend

Definition of “gift” gets fuzzy

Americans spend more…on themselves

Pets love Holidays too

The influence of religion on faith-based holidays can’t be measured

While Winter Holidays weaken, others shine

Table 1-2: Holiday Participation, 2003-2007/2008

Other Holiday spending

Restaurants and Holiday takeout

Holiday Candy sales hold steady

Holiday Spending by Occasion

Christmas is big…but celebrations slide

Santa fatigue?

Tighter wallets, Mall avoidance and impulse spending

Family tops the gift list, but non-gift items see faster growth

Fewer gifts under a nicer tree

Gift givers get indecisive

Fastest growth segments, Consumer Electronics, Gift Cards, Food Gifts

Mother’s Day

Moms love homemade gifts…but anything personal is appreciated

Easter

No Need for Easter Clothes

Valentine’s Day

Father’s Day

Halloween

Holiday Spending - the Consumer

Who gets gifts?

Family and children top the list for Winter Holiday spending

Generation Y, Hispanics, $75+ income groups most likely to spread cheer to co-workers and others

Co-workers and “Others” get dropped from gift lists in lean times, but Hispanics and upper income respondents just try to spend less

Who gets gifts?

Households with incomes of $150K spend three times on average for gifts, but the middle aged are most generous

Even the well-to-do scale back

What do Holiday shoppers buy?

Lean times test the practicality of gift cards

Gift packaged chocolates and specialty food gifts

All Other Spending, Décor, Greeting Cards, Flowers and Plants

When do people shop?

The earliest birds are retired females

Thanksgiving Weekend Shoppers- young, diverse and looking for bargains

More push off shopping until the last minute

How people really feel about Winter Holiday gift spending

Holiday dropouts?

Table 1-3: “Will you celebrate the upcoming Winter Holidays?” by Gender, Race and Income, 2007 and point change from 2005-2007

An indulged shopper will indulge others

Nothing can replace the magic of a special gift

Channels, Retail Formats, and Notable Players in Holiday Spending

While customers tune out media, In-store marketing can converts shoppers to buyers

Shopping malls and their tenants suffer from “mall avoidance” while

Santa’s lap sees fewer little ones

Malls Fight Back but Lifestyle Centers see more shoppers

Kiosks and Automated stores offer flexibility and generate impulse sales

Channels

Department stores

Discounters

Warehouse clubs and Supercenters

Grocery jumps in with big ticket items

Drugstores make choices easy for Holiday spending

Holiday jewelry spending slides but the bridal industry keeps things afloat

Safety concerns, Easter, lead turnaround for the toy channel

Electronics retailers

Online Venues- Amazon.com is top of mind for holiday spending

Home and Furniture stores jump in too

Budgets and Payment Methods

The Future for Holiday Spending

Three factors will slow Consumer spending

Cause/green marketing works, but it must be sincere

Retailers will continue to create a “reason to buy”

“Gifts of experience” shine, but keep them simple

Lower prices, changing technology and broad distribution build holiday sales for electronic gifts

Pet indulgence continues

Coupons make a comeback

Gifts get personal

Getting shoppers back to the mall

Holiday spending 2008-2012, by occasion

Table 1-4: Holiday Spending, Projections 2008-2012 (million $)

Mother’s Day spending steady

Easter popularity builds

Valentine’s Day Steady

Father’s Day evolves

Halloween is getting all grown up

Summary

Chapter 2: Market Size and Growth

Introduction

Scope of Report

Report Methodology

Total Consumer Spending - Overview

Figure 2-1: Consumer Spending - Advance Retail Monthly Sales (in $ millions) GAFO, 1992-2007

Consumer Confidence and Spending

Figure 2-2: Consumer Confidence and Retail Spending, 2003-2008

Conscientious spenders

Fewer things, broader causes -- charitable donations rise

Figure 2-3: Cash contributions and Gift spending per Consumer Unit, 1990-2006

Table 2-1: Charitable Donations, 2007 and % change vs.

YA by type of organization

Total Holiday Spending - Overview

Winter Holidays will Account for 58% of Holiday Spending Dollars in 2008

Figure 2-4: Holiday Spending by Occasion, 2008

Table 2-2: Holiday Spending by Occasion, 2004-2008 (million $)

Why is Winter Holiday spending declining?

Many Factors Point to Lowered Spending on Winter Holidays

Table 2-3: U.S. Census Households by Composition

Impulse spending weakens

Spending Less on Others is a Trend

Figure 2-5: Annual Gift Spending in total and as a percentage of expenditures 1990-2006

Definition of “gift” gets fuzzy

Americans spend more…on themselves

Pets love Holidays too

The influence of religion on faith-based holidays can’t be measured 58

While Winter Holidays weaken, others shine

Table 2-4: Holiday Participation, 2003-2007/2008

Competition inspires creativity

Other Holiday spending

Greeting cards holding steady

Gift wrap and bag demand is steady

Spending on Décor on the Rise

Restaurants and Holiday takeout

Holiday Candy sales hold steady

Table 2-5: Holiday Candy sales for Christmas, Easter, Valentine’s and Halloween. All channels, 2004-2008* (million $)

Chapter 3: Holiday Spending by Occasion

Winter Holidays

Table 3-1: Participation in Winter Holidays, 2003-2007

Table 3-2: Participation in Christmas, Hanukkah, and Kwanzaa, 2003-2007

Christmas is big…but celebrations slide

St Nick’s had a long journey

Santa fatigue?

Tighter wallets?

Table 3-3: Winter Holiday Spending, per Household and Total, 2004-2008

Mall avoidance and impulse spending

Hanukah’s popularity difficult to trend

Kwanzaa celebrants’ reject commercialism

Family tops the gift list, but non-gift items see faster growth

Table 3-4: Winter Holiday Expenditures, by Household and Total, 2003-2007

Fewer gifts under a nicer tree

Are real trees more green? For some, it’s a tough sell

Gift givers get indecisive

Table 3-5: Winter Holiday Expenditures, by Household and Total, 2003-2007

Consumer Electronics and Computer Accessories Post Strongest Growth as

Gifts over Five Years

Mother’s Day

Table 3-6: Participation in Mother’s Day, 2004-2008

Table 3-7: Mother’s Day Spending, per respondent average, total (in $ millions) 2005-2008

Table 3-8: Who’s Getting the Mother’s Day Gifts, 2005-2008

A few buying a lot

Table 3-9: Type of gifts planned for Mother’s Day, 2005-2008

Moms love homemade gifts

But anything personal is appreciated

Fewer, more expensive cards

Easter

Table 3-10: Easter participation, 2003-2008

Table 3-11: Easter Spending, per respondent average & total (in $ millions), 2004-2008

Goodies hold up Easter spending

Table 3-12: Easter Spending, per respondent average total (in $ millions) 2004-2008

No Need for Easter Clothes

Valentine’s Day

Table 3-13: Valentine’s Day participation, 2004-2008

Table 3-14: Valentine’s Day Spending, 2004-2008

Table 3-15: Valentine’s Day Spending, per respondent average, total (in percent) 2004-2008

No Gift at All May be the Safest Kind

Father’s Day

Table 3-16: Participation in Father’s Day, 2004-2008

Table 3-17: Father’s Day Spending, per respondent average total (in $ millions), 2004-2008

Table 3-18: Who’s on the Father’s Day shopping list?, 2003-2007 “Plan to buy a Father’s Day gift for…”

Table 3-19: Type of gifts planned for Father’s Day, 2004-2008

Dad is tough to shop for

Halloween

Table 3-20: Halloween participation, 2003-2007

Table 3-21: Halloween spending per respondent average total (in $ millions), 2004-2007

Table 3-22: How will you celebrate Halloween? (Check all that apply)

Table 3- 23: What will you buy to celebrate Halloween?, 2003-2007

Table 3-24: How much do you plan to spend on Halloween related merchandise? per respondent average, total (in $ millions), 2003-2007

Chapter 4: Holiday Spending - the Consumer

Overview

Who gets gifts?

Family tops the list for Winter Holiday spending

Children drive gift spending

Younger people most likely to buy for friends

Generation Y, Hispanics, $75K+ income groups most likely to spread cheer to co-workers

Table 4-1: Co-worker gift spending, by age, race, and $75K+ incomes 2007, Percent spending a planned expenditure

Table 4-2: “Other” gift spending, by age, race, and $75K+ incomes 2007, Percent spending and planned expenditure

Co-workers and “Others” are first to get dropped from gift lists in lean times

Hispanics and higher income respondents don’t like to cut Winter Holiday gifts for outsiders, but they try to spend less

Pets are too cute to miss the fun, spending stable even in lean times

Who gives gifts?

Households with incomes of $150K spend three times on average for gifts

Income is a strong predictor of gift spending dollars

Table 4-3: Gift Spending by Income & Generosity (gift share of total spending) 2006, $ %

Middle aged are most generous

Table 4-4: Gift expenditures by age group 200

Even the well-to-do scale back

What do Holiday shoppers buy?

18-24-year-olds, Hispanics, Blacks favor clothing gifts, but middle-aged spend the most

Table 4-5: 2006 Annual gift spending on apparel and accessories, by age and ethnicity

Books, CDs, DVDs, videos or video games appeal to younger households and those with kids

Table 4-6: Plan to buy Books, CDs, DVDs, videos or video games for

Winter Holiday gifts, by household incomes, presence of kids, and employment status, 2007

Gift cards to bookstores third most popular kind of gift card

Gift cards and certificates have universal appeal

Gift cards and certificates are a planned gift

Card values steady, but higher income groups buy more of them

Table 4-7: Purchased gift cards, gift certificates for Winter Holiday gifts, by household income, presence of kids, and employment status, 2007

Lean times test the practicality of gift cards

Gift packaged chocolates and specialty food gifts

Consumer Food Gifting up 56% Since 2004; Now 15% of Gift Sales

Table 4-8: Percentage Purchasing Specialty Food Gifts, by Occasion

Valentine’s Day Biggest Occasion for Gift-packaged Candy

One-Third Give Specialty Food Gifts for Winter Holidays

All Other Spending

Decorations

Table 4-9: Percent than plan to buy decor for Winter Holidays, total, marital status, household type, employment status, race and income $75k+, 2007

Greeting cards and postage

Table 4-10: Percent that plan to buy cards and postage for Winter Holidays, total and by household type, employment status, race and income $75k+, 2007

Hispanics, $75K+ income groups are the biggest spenders on flowers and plants

Table 4-11: Percent that plan to buy flowers and plants for Winter

Holidays, total and by household type, employment status, race and income $75k+, 2007

When do people shop?

The earliest birds are retired females

Table 4-12: When will you do your Winter Holiday shopping?

Total, and by employment status and gender, 2007

Thanksgiving Weekend Shoppers- young, diverse and looking for bargains

Table 4-13: Will you shop Thanksgiving Weekend?, 2007

More push off shopping until the last minute

Spending on services outpaces goods

How people really feel about Winter Holiday gift spending

Holiday dropout?

Table 4-14: “Will you celebrate the upcoming Winter Holidays?” by Gender and Race, 2005-2007

An indulged shopper will indulge others

Nothing can replace the magic of a special gift

Chapter 5: Channels, Retail Formats, and Notable Players in Holiday Spending

Media and Advertising

Customers tune out media

Winter Holiday shopping frustrations are high

In store marketing - converting shoppers to buyers

Formats

Shopping malls and their tenants suffer from “mall avoidance”

Mall construction grinds to a halt

But malls have the best Santas

Santa’s lap sees fewer little ones

Malls Fight Back

Lifestyle Centers, not just a place to shop, but a “place to be”

Kiosks are visible, flexible and ideal for impulse sales

Automated Stores

Channels

Department stores

Table 5-1: Department store annual sales, YTD May Sales & Nov-Dec Sales 2006-2008 (in million $)

Figure 5-1: Department store monthly sales, 2006- May 2008 (in million $) Discount Department Stores

Table 5-2: Winter Holiday shopping destinations October & December 2007 Discount Department stores, Department Stores & Online

Company profile: Macy’s Inc.

Differentiating itself

Discounters

Table 5-3: Discount Department store annual sales, YTD May Sales & Nov-Dec Sales 2006-2008 (in million $)

Figure 5-2: Discount department store monthly sales, 2006-May 2008 (in billion $)

Table 5-4: Plan on buying gifts at Discount department stores this year Easter, Mother’s Day, Father’s Day, 2006-2008

Company Profile - Target

Table 5-5: Target sales and growth, 2002-2006 (in million $)

Warehouse clubs and Supercenters

Table 5-6: Warehouse clubs and Superstores, Annual Sales, Winter Holiday Sales % Change vs. YA 2008-May 2008 (in billion $)

Figure 5-3: Warehouse club and Supercenter monthly sales, 2006-May 2008 (in billion $)

Company Profile - Wal-Mart

Grocery jumps in with big ticket items

Table 5-7: Grocery Annual Sales, Winter Holiday Sales % Change vs. YA 2002-2006 (in million $)

Drugstores make choices easy for Holiday spending

Table 5-8: Pharmacies and Drug stores, Annual Sales, Winter Holiday Sales % Change vs. YA 2008-May 2006 (in million $)

Holiday jewelry spending slides but the bridal industry keeps things afloat

Table 5-9: Jewelry stores Annual Sales, Winter Holiday Sales % Change vs. YA 2006-May 2008 (in million $)

Figure 5-4: Jewelry stores monthly sales, 2006-May 2008 (in million $)

Table 5-10: Plan to buy Jewelry as a gift, Mother’s Day, Winter Holidays & Valentine’s Day, 2005-2008 Percentage of respondents

Safety concerns, Easter, lead turnaround for the toy channel

Table 5-11: Hobby, toy, and game stores, Annual Sales, Winter Holiday Sales % Change vs. YA 2006-May 2008 (in million $)

Figure 5-5: Hobby, toy and game stores, monthly sales, 2006-May 2008 (in million $)

Must have toys for Winter Holidays

Electronics retailers

Table 5-12: Radio, TV and other electronic Stores, Annual Sales, Winter Holiday Sales % Change vs. YA 2006-2008 YTD May (in million $)

Table 5-13: Plan to buy Consumer electronics or computer related accessories as a gift Winter Holidays, Father’s Day & Mother’s Day, 2004-2008 Percentage of respondents

Figure 5-6: Radio, TV, and other electronic Stores Monthly sales, 2006-May 2008 (in million $)

Online Venues- Amazon.com is top of mind for holiday spending

Table 5-14: Estimated Quarterly U.S. Retail Sales -Adjusted: Total and E-commerce sales, Q1 2005-Q1 2008

Table 5-15: Plan to shop online, Winter Holidays, Father’s Day & Mother’s Day, 2004-2008 Percentage of respondents

Table 5-16: ONE site where Winter Holiday shoppers did most of their shopping and change vs. year ago, January 2007 & 2008 Percentage selecting by site

Gift cards may be losing their luster

Table 5-17: Types of Winter Holiday Gifts Respondents Prefer to Receive, 2007 (percent)

Table 5-18: Plan to buy a gift card or gift certificate, Winter Holidays, Father’s

Day & Mother’s Day 2005-2008 (percent)

Clothing retailers

Table 5-19: Plan to buy clothing for the Holiday, Winter Holidays, Easter, Father’s Day, Mother’s Day, Valentine’s Day, Point change vs. year ago 2005-2008 YTD June

Home and Furniture stores jump in too

Budgets and Payment Methods

Payment methods vary by consumer

Table 5-20: Payment methods used most often (ONE ONLY), Winter Holidays 2004-2008

Table 5-21: Preferred credit card, Winter Holidays 2004-2008 Women more likely to budget

Chapter 6: The Future for Holiday Spending

Holiday spending is discretionary

Three factors will slow Consumer spending

Cause/green marketing works, but it must be sincere

Retailers will continue to create a “reason to buy”

“Gifts of experience” shine, but keep them simple

Lower prices, changing technology and broad distribution build

holiday sales for electronic gifts

Pet indulgence continues

Coupons make a comeback

Gifts get personal

Procrastination and Mall Avoidance

Holiday spending 2008-2012, by occasion

Christmas in July?

Table 6-1: Holiday Spending: Projections, 2008-2012 (million $)

Mother’s Day spending steady

Easter popularity builds

Valentine’s Day Steady

Father’s Day evolves

Halloween is getting all grown up

Summary

Appendix: Addresses of Selected Marketers

Tourism in United States

United States International Tourism Expenditure, By Domestic Country, Eurbn

• $ 250
• Industry data
• February 2013

Yearly, From 1995 To 2017
By Business Monitor International
Source: World Bank/BMI Forecast

• Industries : Tourism
• Countries : United States

United States International Tourism, Receipts, Eurbn

• $ 250
• Industry data
• February 2013

Yearly, From 1995 To 2017
By Business Monitor International
Source: World Bank/BMI Forecast

• Industries : Tourism
• Countries : United States

United States International Tourism, Receipts, Us$bn, % Change Y-o-y

• $ 250
• Industry data
• February 2013

Yearly, From 1996 To 2017
By Business Monitor International
Source: World Bank/BMI Forecast/BMI Calculation

• Industries : Tourism
• Countries : United States

United States International Tourism, Receipts, Eurbn, % Change Y-o-y

• $ 250
• Industry data
• February 2013

Yearly, From 1996 To 2017
By Business Monitor International
Source: World Bank/BMI Forecast/BMI Calculation

• Industries : Tourism
• Countries : United States

United States International Tourism Expenditure, By Domestic Country, Usdbn, % Change Y-o-y

• $ 250
• Industry data
• February 2013

Yearly, From 1996 To 2017
By Business Monitor International
Source: World Bank/BMI Forecast/BMI Calculation

• Industries : Tourism
• Countries : United States