Nearly two-thirds of consumers shopping at retail outlets in the United States are giving the ultimate last-minute gift this year, said a poll released by the NPD Group Inc., a consumer and retail research firm based in Port Washington, N.Y.
The rise of gift-card giving has changed everything for retailers, said Marshal Cohen, chief industry analyst for the NPD Group.
“This year, we’re seeing less impulse, less self-purchases and less actual purchasing of products,” Cohen said. “That’s because consumers are buying just gift cards instead of gifts. Actual shopping has been cut down to a bare minimum.”
Impulse buys and self-purchases usually represent about 26 per cent of holiday sales, Cohen said.
Last year, the number fell to about 19 per cent and this year it won’t hit 15 per cent, he said.
“When you take impulse out of the equation and you look at what Wal-Mart did today, express checkout for gift cards, and it was the longest line… that’s not shopping,” he said.
Somerset Collection in Troy usually sells about $8 million a year in gift cards, said spokeswoman Linda McIntosh. The average transaction is $75 per card. This year’s sales will hold up despite local economic worries, she said.
“We’re very positive,” McIntosh said. “People know what they want and they are coming in and getting it.”
Gift card sales are expected to rise to $26.3 billion this holiday season, up from $24.8 billion sold during the 2006 holiday season, according to the National Retail Federation.
After a strong start on the weekend after Thanksgiving, holiday retail sales lagged a bit. Retailers were hoping for a rush in the final three days before Christmas, and many offered extended hours and bigger sales to lure shoppers.
The National Retail Federation expects overall holiday sales to grow by 4 per cent to $474.5 billion. Cohen’s forecast sees sales growth of between 2.5 per cent and 2.8 per cent over 2006 levels.
The NPD poll surveyed 6,300 people online last week through Friday night and had a margin of error of plus or minus 2.5 percentage points.
