Survey: Consumer holiday spending flat, online surge predicted

Burlington, Mass. A survey released Tuesday by Burst Media found that while consumer spending overall this holiday season will be flat, 85.3% of respondents said they will holiday shop online.

The consumer 2009 holiday spending outlook, conducted in September with about 2,300 adults 18 years and older, found that 62.8% of consumers plan to spend the same or cut back on their holiday purchases compared to 2008. And although consumers plan to hold tight with their spending, 85.3% of respondents will shop online.

The survey also found that 14.6% of respondents expect to spend more this holiday season than they did in 2008, while one-third (32.7%) expect to spend less and 30.1% expect to spend about the same as they did last year.

Women will be more frugal than men this holiday season with 38.1% planning to spend less on gifts and entertainment, compared to 27.3% of all men. All income segments will trim holiday spending this year with 29.5% of respondents reporting household income of less than $35,000 cutting holiday spending, as will almost half (46.3%) of households reporting household income of $35,000 to $75,000, and 31.3% of households reporting household income of $75,000 or more.

Despite that 63% of consumers express concern over credit card security when making an online purchase, seven out of 10 (69.3%) still plan to make an online holiday purchase. Consumers will also use the Internet to “window shop,” the survey found. The most popular online window-shopping activities are comparing different retailers to find the best price (56.8%), and comparing the features of different brands (55.3%).