NPD: Consumers to spend less on holiday gifts

PORT WASHINGTON, N.Y. The NPD Group reported that 26% of consumers surveyed told NPD they plan to spend less. In the 2007 survey results only 18% said they planned to spend less. “This 8% decline illustrates that consumers are already focused on the idea of spending less,” said Marshal Cohen, chief industry analyst, of The NPD Group.

According to the survey, the percentage of consumers who said they plan to spend more remained the same between 2007 and 2008 at 11%. The percentage who said they would spend about the same changed from 70% in 2007 to 63% in 2008.

“For the first time I am predicting flat to declining sales for the holiday season,” stated Cohen. “With consumers already saying they plan to spend less, stores with lean inventories, those inventories on sale as soon as they hit the floor, and tightening credit both for businesses and consumers, where can growth come from?” 

Cohen added that there is no "must-have" gift this season to drive consumers into stores, such as last year's GPS systems, which were used to lure customers in. "Where is this holiday’s GPS?" asks Cohen, “So far nothing has surfaced, and in short-order if nothing does, it will be too late.”