Holiday shopping 2010: Countless changes crop up for this year’s Christmas
Long lines and great sales aren’t the only things in store for holiday shopping this year. Many retailers and shoppers have altered their ways in order to keep up with changes this season.
By Tierney Gallagher
Shiny tiled floors and glass storefronts reflect the glimmer of hundreds of tiny lights strung from the ceiling on fake fir-tree garlands. Christmas music hums softly in the background, accompanying the harmony of clattering soles that tread across the off-white floors. Bags of all shapes and sizes float precariously just above the floors, weighing down heavily on the arms of who carry them.
Some shoppers take their time as they stroll past stores brimming with friendly sales associates with warm smiles. They chat merrily with companions while gazing in the big windows of storefronts at the newest gadgets or latest fashions. Other shoppers hurry quickly from store to store, trying to escape the crowds as soon as possible.
As people pass by, signs in front of stores become visible - declaring “Sale!” “Now up to 60% off!” “Buy one, Get one!” - their offers luring in those hoping to purchase items for friends and family.
A little girl with an excited face clutches her mother’s hand and points into a particular store window, seemingly hoping for an early Christmas present. Meanwhile, other children and their parents are lined up on a red velvet carpet, surrounded by mounds of soft cotton “snow” and a gold iron fence. Some look excited at getting the chance to sit on “Santa’s” lap for a picture, while others seem exhausted from accompanying their families on long shopping treks.
During the busiest time of the retail year, local malls are packed with shoppers buying gifts and window-shopping.
This scene may seem familiar. It sounds like a typical day in the mall this holiday season and during others in years past. But while one can always expect the mall and retail stores to be busy with shoppers this time of year, there is more than crowds and discount sales behind holiday shopping this year.
Several things have changed in 2010, including the economy’s impact on shopping and what consumers are buying. And both shoppers and retailers have had to change with the times, developing new strategies to get the most out of their holiday season.
Economy down, Gift giving up
Although the economy continues to impact shoppers, the results of a National Retail Federation survey conducted by BIGresearch indicate that shoppers may be ready to front a little more cash this holiday season.
According to the NRF survey, 61.7 percent of shoppers say the economy will impact their spending, down from last year’s 65.3 percent.
“When the economy has high unemployment, which has been true since 2008, this hurts consumer confidence,” says Dr. Mike McCully, associate professor of economics at High Point University. “Low consumer confidence hurts holiday shopping. However, confidence breeds confidence. When consumers hear that other consumers are buying, they are more likely to spend more money themselves.”
This year, shoppers say they will compensate for the economy by spending less, comparison-shopping online or with newspapers and circulars, shopping for sales, or using more coupons.
So far, this seems to be true. Despite the state of the economy, the 2010 holiday shopping season seems to have gotten off to a strong start. Not only have more shoppers visited stores and websites since Black Friday, they also spent more than last year.
“Retailers have informed me that the economy has impacted their sales but most have adopted a more proactive strategy for this holiday season,” says Tom Dayvault, president & CEO of the High Point Chamber of Commerce.
According to the NRF survey, 212 million shoppers visited stores and websites over Black Friday weekend, which is up from 195 million last year. The average shopper spending reached $365.34, slightly higher than last year’s $343.31. Total spending for the popular retail weekend reached an estimated $45 billion.
A chart documenting Average Consumer Holiday Spending from 2004 through 2010. Courtesy of the NRF.
However, that doesn’t seem to be all that shoppers intend on spending this season. According to the 2010 Holiday Consumer Intentions and Actions Survey, also by the NRF, U.S. consumers plan to spend an average of $688.87 on holiday-related shopping, compared to last year’s $681.83.
Bigger gifts may bring boost
A green knit sweater for your cousin. A Barbie doll for your niece. A gift card to your mom’s favorite store. A Kindle for your dad, preloaded with his most loved books. The latest games to go with the new Kinnect for Xbox for your kids. And don’t forget the diamond earrings for your wife.
What consumers are buying this year could also be a good sign for the economy. Discretionary items, like electronics and jewelry, are appearing to be more popular among consumers than in recent years.
“People always going to buy Christmas presents, it depends on what types of Christmas presents they’re going to buy,” says Kathleen Stolle, store manager for Target at 1050 Mall Loop Road. “This year, you can definitely tell that the economy’s a little bit better. They’re buying more TVs, more electronic-type merchandise, and the higher dollar amount stuff that they didn’t necessarily buy in years past.”
One thing that seems to be increasingly in demand this year in addition to electronics is jewelry.
The NRF’s 2010 Holiday Consumer Intentions and Actions Survey shows that 23 percent of people will ask for jewelry this year.
“Consumers who are not feeling confident will usually spend their money on basic items - clothing for example - and will shop more at discount stores,” McCully says. “As the economy improves, they are more willing to spend on luxuries.”
Big bunches brave Black Friday
It is dark and though warm for this time of year, still chilly. Out in the early morning air, people are huddled into makeshift lines, clad in coats with thermoses of hot coffee and snacks. Tired eyes droop as they fight sleep, trying to stay awake for the excitement that will soon ensue when the doors open. It’s Black Friday and at 3 a.m. shoppers are already gathered in long lines hoping to get the best deals for the items on their gift lists this year.
Black Friday seems to start earlier every year and 2010 is no exception. Many stores opened earlier than ever this year in an attempt to bring in consumers.
“The goal is to get the shoppers in their store first,” Dayvault says. “Data shows that early shoppers stay in the first store they visit longer than other stores they may shop throughout the day.”
According to a NRF survey conducted over the Black Friday weekend by BIGresearch, the number of people who began their Black Friday shopping at midnight tripled this year from 3.3 percent last year to 9.5 percent. In addition, at 4 a.m. nearly one-fourth of shoppers were already at stores.
Target opened at 4 a.m. this year and according to Stolle, over 1,000 people were lined up in the store’s parking lot.
Shoppers stroll the halls of Four Seasons Town Centre in Greensboro, N.C., trying to get some holiday shopping in.
But for shoppers who weren’t brave enough to face the big crowds, retailers also offered big discounts and sales on their websites - especially for Cyber Monday.
The NRF Black Friday survey shows that the percentage of people who shopped online this particular weekend rose to 33.6 percent, from 28.5 percent last year.
A chart documenting Holiday Sales Growth from 1996 through 2010. Courtesy of the NRF.
However, even though consumers seem to be spending more so far, this doesn’t guarantee the rest of the season will be as successful.
“There is a lot of excitement around Black Friday, which kicks off the holiday shopping season in a good way,” McCully says. “Sometimes, though, businesses price their products too low. This creates a false expectation in consumer minds, and businesses lose out on some possible profit. There is also the danger they will run out of popular items before Christmas.”
Keeping up with the crowd
While increased traffic is good for stores and the economy, it can also be a challenge for retailers to keep up with shoppers during the busy holiday season.
At Target, Stolle says they use teamwork to stay on top of things.
“We’ve got special teams working in the toys areas right now, we’ve increased our coverage in electronics to help out with guest service over there, and we have an in-stocks team that scans the entire building everyday to make sure that we are ordering stuff from our DC and keeping rein checks and substitutions up so that our guests don’t leave empty handed,” Stolle says.
Christmas decorations aren’t the only things decking the halls this season. Signs for holiday sales festively accompany wreaths and lights at Oak Hallow Mall in High Point, N.C.
According to Adam L. Rice, store manager at Sears in Oak Hallow Mall, planning for this time of year is everything.
“One of the biggest challenges we face at Sears in keeping up is maintaining the customer service that we demand everyday,” says Rice. “It is extremely important at this time of year and a lot of our planning is making sure that we have the right people on the floor to handle the traffic flow.”
But special teams and planning aren’t the only methods retailers are utilizing this year.
According to the International Council of Shopping Centers, 90 percent of malls will offer special hours this season and 60 percent will offer special amenities for holiday shoppers. Some popular amenities include gift-wrapping, valet parking, refreshments, shopper shuttles, security escorts, gifts with purchases, and family events.
Seasonal shopping and the shopper
In Sears at Oak Hallow Mall, Russell and Betty Draughn are stooped over a long glass case while they leisurely admire the shiny gold jewelry inside. Dressed in warm winter coats and sweaters, laden with just one shopping bag in her arms, the High Point, N.C. couple looks satisfied as they about to leave the mall for the night. One wouldn’t be able to tell, but the Draughns find holiday shopping to be a huge inconvenience.
“Really, I think that holiday shopping has become such a hassle nowadays,” says Betty Draughn. “There are just so many people. It can get pretty stressful to navigate.”
Not much of a shopper himself, her husband agrees.
“We prefer to just buy gift cards for the people on our lists because they are easy and fit everybody,” Russell Draughn says.
While gift cards top the list as the most purchased holiday item at 66 percent, according to the International Council of Shopping Centers, many shoppers still seem to emerge from stores carrying more than just envelopes.
Alyssa Chislett, a 19-year-old from Greensboro, N.C., strolls the halls of Four Seasons Town Centre, carrying what seems to be a heavy load. Toting around several bags, she doesn’t seem to notice their bulk as she surveys several store windows.
“While I still like to shop for the holidays, over the past few years I’ve found myself buying people smaller gifts,” Chislett says. “Since I’m a college student, to help my budget I’ve even started making homemade gifts.”
While Russell and Betty Draughn favor department stores for their holiday shopping, some of Chislett’s favorite stores include Hallmark, Forever 21, and specialty stores such as Meg’s Gifts.
The NRF’s 2010 Holiday Consumer Intentions and Actions Survey shows that some of the most popular holiday shopping destinations this year include department stores at 54.5 percent, as well as grocery stores, clothing stores, and of course the Internet.
Always a holiday classic, Santa attracts many shoppers and their families in the mall.
15 Days and counting
With Christmas just over two weeks away, shoppers still have time to get the gifts left on their lists. But don’t expect the lines to be short because stores will still be busy.
“I still haven’t finished my shopping yet,” Chislett says. “I know it’s coming up soon, but just finding the time to get out here can be really difficult.”
And things are likely to stay busy up until the actual holiday. Stolle and Rice agree that next to Black Friday, the weekend before Christmas is the busiest of the season.
“Most of the shoppers have really become late shoppers in the season due to the economy and holiday prices being slashed so much,” Rice says “This is the time of year a customer can usually get the best deals.”
So in order to have those nicely wrapped boxes sitting under your tree in time for Christmas morning but still get the best deals, check the sidebar to the left for some tips to help you get the most out of your shopping experience. And for more information about holiday retail news and statistics, please visit these websites:
