Area shoppers' holiday spirits are sagging
They told a survey they plan to spend 18 pct. less in 2011. And more who buy will look for deals via smartphone.
As retailers hope for long cashier lines and plenty of holiday cash, they may have to curb their enthusiasm: A survey being released Wednesday finds a halting mood among Philadelphia-area consumers and their national brethren.
Deloitte's 26th Annual Holiday Survey, which touches on wide-ranging consumer themes, found that 51 percent of regional shoppers believe the country is in a recession and there has been no recovery.
Those local shoppers said they planned to spend on average $434 on holiday gifts this year, an 18 percent drop from $530 last year. Their caution may stem from the fact that 38 percent believe the economy will weaken next year. Only 24 percent felt that pessimistic this time in 2010.
Deloitte's regional results (conducted between Sept. 16 and Sept. 26 among people in eastern Pennsylvania, Delaware, and South Jersey) were largely consistent with the firm's simultaneous polling of consumers nationally.
The dour mood reflects intensifying worry. A separate survey released Tuesday by the Conference Board found consumer confidence fell to its lowest level since March 2009, when 663,000 jobs were purged from U.S. payrolls.
"Lackluster employment growth, debt crises, and stock-market fluctuations have battered consumer confidence while inflation left many with lighter wallets this fall," said Tara Weiner, managing partner for the Greater Philadelphia Region of Deloitte L.L.P.
"As a result of this challenging economy, our survey shows that many shoppers are turning to online retailers and smartphones to compare prices, research discounts, and view customer product reviews," Weiner said.
Smartphone shopping trends were among Deloitte's many other findings. The smartphone-savviest group of consumers, the firm said, were ages 44 and younger.
In fall of 2007, only 19 percent of Generation Xers (28 to 44 years old) had smartphones. Today, 42 percent do. Among Millennials aged 22 to 27, that number increased from 21 percent in late 2007 to 54 percent this fall, Deloitte said. Fifty-four percent of smartphone owners said they would use their devices in stores to compare prices.