In an effort to get a pulse check on the upcoming holidays, Zoomerang, an
online survey and polling tool, fielded studies to find out how small to
medium-size businesses and consumers plan to approach the season. The survey
findings suggest that the current state of the economy is not dampening
consumer spending or retailer preparation as compared with 2009.
Despite the lack of confidence in the economy, retailers are predicting a
stronger 2010 holiday season compared with 2009, according to a U.S.
survey of 340 midmarket retailers. Even though consumers share a lack of
confidence in the economy, the survey found more than half of the nearly 2,200
consumers surveyed indicated they will increase or maintain holiday spending
levels this year.
"Like many of the retailers, consumers are taking precautionary
measures by placing essential items on their wish lists," said Alex Terry,
general manager of Zoomerang. "In order to make the most of their
stretched budgets, the survey suggests that more than half of the people will
be searching online for the best deals possible."
In fact, Terry noted the survey found only 36 percent of the consumers
surveyed plan to do all their shopping in-person at retail stores. The majority
of consumers—64 percent—will do some or all of their holiday shopping online.
While retailers took precautionary measures earlier in the year, such as
decreasing inventory or marketing budgets, many are ramping up in preparation
for the holidays. More than 25 percent of the businesses surveyed plan to
increase inventory, hours, customer service, and marketing and/or social media
budgets.
The economy does seem to impact willingness to purchase luxury goods.
Retailers should consider that 25 percent of the consumer respondents indicated
they purchased luxury items in 2009, while only 55 percent of that segment plans
to do so again in 2010. Additionally, among the top items placed on the wish
lists of consumers surveyed were clothing, electronics/appliances and
books/music/DVD/games at 22 percent, 17
percent and 14 percent, respectively.
"Compared to large retail chains, the flexibility and nimble nature of
small to midsized retailers enables them to adapt quickly to shifts in the
market and economy," Terry said. "As a result, these businesses are
able to make the most of a cautious holiday spending season."
Midmarket News & Reviews 
