"It's good news for retailers that Gen Y hasn't lost its penchant for Black Friday," said Tom Krause, director of strategic consulting for Maritz Research Retail Group. "This generation is known for their impulse spending and taste for fashion so they are a great target for retailers this holiday season. Plus, according to the survey, they are the only generation saying they will spend the same as last year ($550), rather than cutting back, which could be attributed to the fact that this particular generation has never really experienced a recession."
Capturing spend by generation
"Gen Y isn't cutting back this holiday season and Gen X shoppers still plan on spending the most this year - an average of $607 - despite the generation's spending decline from previous years. Retailers should keep an eye toward catering to those generations," said Krause. "A notable exception is Sears, who still has not cracked the code with the younger generations. Sears' shopper profile skews older, which makes them more vulnerable to the forecasted drop in spending among Boomers and Silents."
Shoppers stay jolly with creative ways to offset holiday spending
While budgets are tight this year, consumers still want the holidays to be filled with lots of presents and good cheer. From using the economic stimulus check to re-gifting, Americans want to maintain a high level of generosity during the holidays. The Maritz poll explored the top ways consumers are adjusting to the declining economy this holiday season. Results indicated that Gen Y shoppers will apply for seasonal retail jobs to take advantage of discounts more than any other generation. Also, 81 percent of women will do pre-shopping research (compared to 67 percent of men) and 69 percent will focus on giving practical gifts rather than non-essential gifts (compared to 54 percent of men). Women will also focus more on homemade and sentimental gifts (42 percent) compared to their male counterparts (28 percent).
According to Krause, "It's not all doom and gloom this holiday season. Consumers are still spending money and looking for creative ways to supplement their budgets. But it's up to retailers to train employees, and provide convenience and value-added incentives to capture those holiday dollars."
Tis the season for a better holiday shopping experience
When asked about the single most important improvement retailers could make to create a better holiday shopping experience, respondents indicated that additional check-out and return lines, and friendlier and well-informed employees would improve the overall experience.
Krause adds, "Retailers should focus on the small details to make a big difference - train employees to maintain a friendly attitude, reconfigure the store to create an easy flow around the check-out counters and customer service desks and keep information on merchandise at other stores readily available to combat issues created by low inventory. Those small changes will go a long way."
