Gift cards appear to be the most popular gift item by far among Indiana shoppers, with 71 percent of respondents saying they will buy this item.

He says this year's study also finds that Hoosiers are definitely of two minds when it comes to the nation's economic future and their prosperity.

Becher says the 7.6 percent increase also includes socializing away from home, entertaining, non-gift clothing and home/holiday furnishings.

Source: Inside INdiana Business

Press Release

INDIANAPOLIS—A year removed from last year’s automotive bailout and related economic challenges, Indiana shoppers are feeling better about the economy and spending on the holidays, a Deloitte survey suggests.

Deloitte’s 24th annual Holiday Survey indicates the average Hoosier plans to spend $1,053 on gifts and other shopping related to the holidays, a 7.6 percent increase over the $979 they said they would spend last year.

Buoying their spending plans is the finding that 46 percent of Indiana consumers believe the economy will improve in 2010, compared with only 25 percent last year. And in another positive indicator, 51 percent said they plan to spend the same or more than last year, compared to 42 percent who said this in 2008.

“Consumers appear less anxious about the economy than last year, providing some reason for cautious optimism this year,” said Mike Becher, Deloitte & Touche LLP, managing partner of Deloitte’s Indianapolis office. “However, area retailers may need to intensify marketing and promotions to attract shoppers who appear to be regaining confidence as well as those who continue to demonstrate conservative shopping habits.”

Becher noted that the Holiday Survey points to a “tale of two consumers.” While more consumers are optimistic this year, there is still a significant portion of Indiana consumers who are expressing an opposite sentiment. For example, 44 percent of Hoosiers say their financial situation is worse now than a year ago.

“All in all it’s good news that Hoosiers are saying they will spend more,” said Becher. “In the final analysis, I would expect a more flat outcome compared to last year. Economic realities may have consumers pull back once they enter the stores.”

The 7.6 percent increase factors in not only gift purchases but also socializing away from home, entertaining, non-gift clothing for self and family and home/holiday furnishings. Specifically, Hoosiers said they will spend on average $610 on gifts compared to $587 last year; $147 on socializing away from home as opposed to $138 in 2008; $129 on entertaining at home compared to $118; $102 on non-gift clothing compared to $75; and $65 on home/holiday furnishings compared to $61.

The average number of gifts Indiana shoppers plan to purchase declined to 20 from 25 last year.

Changing Habits
In other areas of the Holiday Survey, 64 percent of Indiana consumers plan to shop differently due to concerns about the economy. Of these respondents, 75 percent plan to buy more items on sale, 61 percent will buy more lower-priced items, 59 percent will make more lists of things to buy so that they don’t overspend, and 57 percent will use more store coupons.

Discount Stores Still Top Destination; Gift Cards Remain Top Gift
Discount stores continue to hold the top spot as a shopping destination with 69 percent of Indiana respondents planning to visit these sites. The Internet was the next most cited destination, at 38 percent.

Some of the other popular shopping destinations include toy stores, outlet stores and restaurants. Traditional department stores continue their downward trend in Indiana, falling to 18 percent from 31 percent last year.

Gift cards appear to be the most popular gift item by far among Indiana shoppers, with 71 percent of respondents saying they will buy this item. The average Indiana consumer plans to purchase 6 gift cards or certificates.

The second most popular gift category is clothing at 51 percent, followed by CDs and DVDs for music and movies at 44 percent and games/toys/dolls (excluding computer and video games) at 43 percent.

Technology-related gifts continue to grow in popularity in Indiana. Twenty-seven (27) percent said they will buy computer/video games, up from 23 percent last year, and 15 percent will buy home electronics such as computers, TVs and stereo receivers, up from 9 percent.

Let the Bargain Hunter Beware
According to Becher, bargain hunters may encounter fewer deals this year.

“I don’t think we’ll see the level of sales we saw last year because retailers have kept their inventories much more leaner heading into the season,” said Becher. “They are under less pressure to hold major sales to move a glut of slow-moving merchandize.”

Mobile Phone the New Shopping Guide
The ubiquity of mobile phones may be a bright side for retailers this year with 16 percent of consumers in Indiana indicating they plan to use their mobile phone while shopping to find store locations, obtain coupons and sales information, and research products and prices.

“Retailers might consider taking advantage of this trend by sending more proactive communications to their customer base,” said Becher. “There is an opportunity to create more of a personal relationship between the customer and the store.”

About the Survey
The survey was commissioned by Deloitte and conducted online by an independent research company between September 24 and October 2, 2009. The survey polled a sample of 10,878 consumers, including 320 in Indiana, and has a margin of error for the entire sample of plus or minus one percentage point.

For more information about Deloitte’s Annual Holiday Survey, including interesting statistics, historical data and useful links, please visit www.deloitte.com/us/2009HolidaySurvey.

About Deloitte
As used in this document, “Deloitte” means Deloitte LLP and Deloitte Services LP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

Source: Deloitte