Holiday Spending Forecast
Deloitte & Touche's holiday forecast predicts consumers will be more "Scrooge-like" during the 2007 holidays. About four in 10 people (41%) said they expect to reduce their overall spending. Brandweek
Gift Cards
For the fourth straight year gift cards are expected to be the top purchase, with more than two-thirds (69%) of people planning to buy them, up from 66% in 2006. The amount they're putting on the cards has increased from $139 in 2006 to $199 in 2007. Brandweek
Consumer Reports ran a full-page ad in the New York Times this week warning consumers, "Last year, shoppers like you were out $8 billion because of unused, lost or expired gift cards. Easy money for retailers. Lost money for you."
On the Consumer Reports website they note that bank-issued gift cards, not retailer-issued gift cards are the primary problem. It would have been nice if they'd made that clear in the ad. They warn consumers about "fees, expiration dates and gotchas" with bank-issued gift cards.
Given the popularity of gift cards as noted above, it's unlikely this will make much of a dent in gift card sales. But retailers would be wise to clearly disclose fees and limitations on gift card displays to inform and reassure buyers.
Holiday Catalogs Support Online Sales
Once considered "old-fashioned and expensive," holiday catalogs are making a comeback as a support to online sales. "Amazon.com is great when consumers know what they're looking for, but when faced with a long list of people and a short list of ideas, having a catalog to act as a guide can be a boon." AdAge.
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