Stockings may not be as stuffed this year, as new research from Mintel reports that three in five Americans (60%) say they’re trying to stick to a budget more this year than they were last year. In an exclusive consumer survey done to understand budget shopping habits, Mintel found that over half of people in all income groups are trying to budget their money more than they did in 2007.

"Economic struggles - from rising food and energy prices to declining home values to spiraling consumer debt - are seriously impacting people’s shopping habits," states David Morris, senior analyst at Mintel and editor of the new Budget Shopper report. "This coming retail season, we expect many people to tighten their purse strings even more, spending more consciously than they have in the past. Retailers need to recognize, empathize and quickly react to consumers’ need to budget their holiday gift and entertainment dollar."

Mintel’s study found that young adults and women are most likely to be budgeting and looking for savings across the board. While young adults tend to "always look for the cheapest product possible" more than older adults, women of all age groups are more likely than men to practice budgeting behaviors such as using coupons and reading newspaper sales fliers. Additionally, 64% of women (versus 59% of men) say they’re trying to stick to a budget more this year than they were in 2007.

Mintel found that people’s budget shopping habits differ from store to store. "The way that shoppers ‘look for a deal’ in one store is often very different from how they try to save money in another. Retailers who understand the nuances of budget shopping will best be able to give people the deals they’re looking for this holiday season," comments Morris. Suggestions include:

- Online retailers – Four in five female survey respondents (85%) say they buy more online with free shipping, while 64% of 18-24 year olds say they always look for the cheapest product available online. Mintel recommends that online retailers advertise free or flat-rate shipping deals and sales promotions on their home pages.

- Mass merchandisers – In mass merchandise stores like Target and Big Lots, two-thirds of shoppers (67%) always look at sale items before non-sale items. Also, 59% of 18-24 year olds always look for the cheapest product available. Mass merchandisers may be able to catch the business of affluent shoppers as they "trade down" to cheaper retailers.

- Clothing retailers – For clothing retailers in particular, expanding return policies for women, who often control spending, may help them develop trusting, loyal relationships. "Showing a budget-savvy woman that you understand her shopping preferences is paramount to keeping her from trading down to a discount or thrift retailer. Clothing stores need to promote deep discounts and ‘buy one get one’ offers to tap into bargain-hunters’ shopping preferences," says Morris.

David Morris points out that above all, "now, more than ever, it’s important for retailers to be honest with consumers." Helping shoppers understand value, while continuing to cater to their specific needs, should provide the best solution for retailers looking to glow this holiday season.