Shopping ‘therapy’ for U.S. consumers who feel financially better off

CHRISANTHI Kazantzis took advantage of Black Friday sales at Best Buy in Warwick. Despite the rain, a line of customers snaked along the front of the building at 5 a.m. - the time the store opened. /
CHRISANTHI Kazantzis took advantage of Black Friday sales at Best Buy in Warwick. Despite the rain, a line of customers snaked along the front of the building at 5 a.m. - the time the store opened. /

NEW YORK – Most consumers, 66 percent, say they are financially the same or better this year, compared to 2009, according to the Deloitte 25th Annual Holiday Survey; 62 percent say they plan to spend the same or more this holiday season.

“Consumers who are feeling secure in their financial situation appear more willing to engage in some retail therapy, satisfying some pent up demand,” said Alison Paul, vice chairman and retail sector leader, Deloitte LLP.

“At the same time, there are households that remain focused on necessities due to a job loss or other issues impacting their incomes. Other consumers report an improvement in their personal finances, yet remain cautious about the economy,” said Paul.

Half of the surveyed consumers feel the economy is either in a recession or heading back into one, Deloitte reported.

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A minority of consumers, 35 percent, reported their household financial situation was worse compared to last year; nevertheless, this number grew to 40 percent when focusing on the 45 to 60-year-old age group.

Those aged 45 to 60 were the most affected by economic concerns, with 46 percent saying they will spend less this holiday season and 41 percent reporting they have permanently cut back on the amount of money they spend.

On the other hand, those aged 18 to 29 are getting ready to cut loose with their holiday parties, averaging 50 percent more on nongift spending than other age groups.

In a common trend among consumers, holiday shoppers reported the Web is the biggest “retail game-changer;” 46 percent said they are smarter about prices thanks to the Internet, 37 percent say shopping is simpler and 25 percent said they are more confident in their purchases after reading online reviews.

Smart phones had the most significant impact on the lives of those aged 18 to 29; 37 percent plan to use their mobile device during the shopping process.

The Deloitte survey was conducted from Sept. 23 to Oct. 10 and polled 12,418 consumers with a 1 percentage point margin of error.

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