Grilling Up Good Times On The Fourth Of July

June 26, 2014

With winter's polar vortex a distant memory, summer's warm temperatures have consumers celebrating in front of the grill.

According to NRF's Independence Day Survey, more than 153 million consumers - nearly two-thirds of those celebrating - are set to observe the Fourth of July holiday with a cookout, barbeque or picnic, spending an estimated $6.2 billion ($68.16 per household) on burgers, snacks and other food items for the occasion.  This is the first year NRF asked celebrants about their spending plans on food items.

While the majority will spend the day around a picnic table, many will also attend a fireworks display or community celebration (105 million) or a parade (27 million).  Plans for each of those activities declined from last year, but an increasing number of celebrants are taking advantage of the three-day holiday weekend: 13.7 percent (32 million) plan to take a vacation, the highest in the survey's history.  This figure rises to nearly one in five among Millennials.

Although gas prices continue to creep upward, holiday travelers seem relatively undaunted.  More than 70 percent indicate their spending for the Fourth of July will not be impacted by prices at the pump, up from nearly 65 percent a year ago.

Source: National Retail Federation

Dads Enjoy Better-Than-Expected Father's Day

June 18, 2014

The National Retail Federation (NRF) had forecast that Father's Day spending would shrink this year, reaching just $12.5 billion.  But it looks like the smallest of gift-giving holidays fared better than expected.

Overall U.S. retail online sales for the week leading up to Father's Day - June 9-15 - climbed more than 14% compared to the same period last year.

Some of the key drivers were mobile traffic, which accounted for more than 38% of all online traffic, up more than 26% compared to the same period last year.  Mobile sales saw strong growth as well, up more than 37%, reaching nearly 19% of all online sales.

Smartphones drove 24.8% of all online traffic compared to tablets at 12.85, making it the browsing device of choice.  When it came to making the sale, tablets drove 12.2% of all online sales while smartphones accounted for nearly half of that at 6.4%.  Tablet users also averaged $106.71 per order, versus smartphone users, who averaged $89.55 per order.

As a percentage of total online sales, iOS was almost four and a half times higher than Android, driving 15.2% versus 3.4% for Android.  On average, iOS users spent $103.85 per order compared to $73.08 for Android users, a difference of 42%.  iOS also led as a component of overall traffic with 25.6% versus 12.3% for Android.

Shoppers referred from Facebook averaged $99.43 per order, versus Pinterest referrals, which drove $142.75 per order.  However, Facebook referrals converted sales at a rate more than four times that of Pinterest referrals.

Supporting these overall trends, real-time trends across three of the most popular retail categories for Father's Day purchases were reported:

• Department stores: Father's Day total online sales grew by 30.5% over the same period last year, with mobile sales growing by 29% year over year.
• Home goods: Father's Day total online sales grew by 21.4% over the same period last year, with mobile sales growing by 25% year over year.
• Apparel: Father's Day total online sales grew by 13.5% over the same period last year, with mobile sales growing by more than 42% year over year.

Source: Retailing Today

Americans To Spend More Than $4.7 Billion On Graduation Gifts

May 19, 2014

Graduation season is upon us and young adults across the country are preparing for the next step in their life, be it a new job or a new school.  These same graduates are very likely already thinking of what to do with the graduation gifts heading their way.

While it's certainly not the biggest consumer spending season, the timeframe around graduation is still very big business for retailers large and small, and with more Millennials taking the stage these days, it should continue to grow.  According to NRF's Graduation Spending Survey, the average person buying graduation gifts will spend $97.79, and will shop for approximately two graduates.  Total spending on gift cards, electronic items, apparel and other items will total $4.7 billion, the highest amount in the survey's nine year history.

 

Information
Only those who plan to purchase a gift for one or more graduates answered this question.

Graduation for many is a rite of passage.  High school graduates will look to mom and dad to stock their car full of new gadgets, apparel items and gift cards as they head off to college.  College graduates are looking forward to their first big job, and with it their first "real world" paycheck.

To help smooth the transition, graduates' loved ones this year will say "Congratulations" with a whole bunch of cash.  The survey found most (56.8%) will give cash to the graduates they know.  Nearly 40 percent will give a card and 12 percent will splurge on new apparel items for the lucky grads.  Three in 10 will let the celebrant choose and will buy gift cards, and 8 percent will buy an electronic item.

The journey is just beginning for today's Millennial.  But friends and family will recognize their accomplishments thus far with gifts - and most importantly - cash.

Source: National Retail Federation

The Long And Short Of America's Consumer Holidays

May 1, 2014

For 11 years now, the National Retail Federation has gauged consumers' spending intentions on America's favorite holidays like Valentine's Day, Mother's Day, Halloween and of course, Christmas.

During that time, Halloween has grown to become one of the most popular holidays of the year, average spending on back-to-school items has increased 31 percent since 2004 , and Thanksgiving Day has officially become a bonafide shopping day for millions of bargain-hungry Americans.  So, how do holidays "rank" when it comes to consumer spending?  Here's how each holiday ranks as of the release of the latest Mother's Day survey:

Winter holidays: As the largest gift-giving holiday of them all, the winter holidays account for nearly 20 percent of total annual retail sales for retailers.  In 2013, holiday celebrants spent an average of $730 on gifts, food, decorations and more.  After all was said and done, NRF found that holiday sales increased 3.8 percent to $602 billon.  More than 90 percent of Americans celebrated Christmas, Kwanza or Hanukah last winter, the most celebrated season of the year.

Back to school/College: Spending on pencils, backpacks, denim, college dorm furniture and collegiate wear, tablets, smartphones and notebooks costs mom and dad hundreds of dollars on average and a total of $72.5 billion last year.  But savvy parents know bargains are not hard to find.  Almost every sector of retail plays a role: drug stores, thrift stores, electronics stores, department stores, discount stores and even grocery stores for penny-pinching college students and their parents.

Mother's Day: Consumers say they will spend an average of $163 this year - $19.9 billion total - with the majority of their budget going to special outings, new apparel items and jewelry.  As to why Mother's Day is so much bigger than Father's Day: the types of gifts people typically buy mom tend to cost a little more, and dad even admits that he doesn't like all the fuss anyway.

Halloween: In 2013, two-thirds of Americans said they would partake in Halloween activities, spending $75 on average to celebrate, for a total of $6.9 billion.  The holiday has become more of an adult event than ever before, helping boost spending on costumes, candy, decorations and party materials more than 55 percent since 2005.  With the growth in popularity, other sectors have jumped into the mix.  Home improvement stores take advantage of their vast space to sell life-sized yard decorations, and drug and grocery stores are also now devoting select aisles to decorations, candy and costumes.

Source: National Retail Federation

Families Look To Shower Mom This Mother's Day

April 29, 2014

After splurging on tablets and smartphones, beauty supplies, apparel and jewelry for mom last year, consumers this year will celebrate Mother's Day keeping practicality in mind.  According to NRF's Mother's Day Spending Survey, Americans will spend an average of $162.94 on mom this year, down from a survey high of $168.94 last year.  Total spending is expected to reach $19.9 billion.

"As one of the most universally celebrated holidays, retailers will take this opportunity to attract Mother's Day shoppers with promotions on ladies apparel items, health and beauty products, jewelry and even restaurant options," said NRF President and CEO Matthew Shay.  "Now fully into spring, retailers are hoping consumer sentiment and spending intentions continue to grow as we round out one of the busiest retail seasons of the year and prepare for summer."

Moms work hard and they are entitled to a show of appreciation on their special day.  Most consumers will acknowledge that appreciation with a greeting card (81.3%), though it appears her loved ones will also look for special gifts.  Two-thirds (66.6%) of those celebrating will buy mom her favorite flowers, spending a total of $2.3 billion, and 33.5 percent will look for spring sweaters and blouses, spending a total of $1.7 billiion on apparel and accessory items.  Mom's loved ones will also buy books and CDs ($480 million), housewares or gardening tools ($812 million), personal experience gifts like a day at the spa ($1.5 billion), jewelry ($3.6 billion), and special outings like brunch or dinner ($3.8 billion).

Having spent the last few years treating mom to electronic gifts like tablets, smartphones, cameras and more, Americans this year may have less of a reason to invest in those items: 13.1 percent say they will buy mom a consumer electronic item and will spend a total of $1.7 billion, down from $2.3 billion last year.

"Americans haven't forgotten about the state of the economy and are treating their finances and gift-giving budgets in a way that keeps practicality top of mind," said Prosper's Consumer Insights Director Pam Goodfellow.  "But like we saw with Valentine's Day and Easter, people this year will look for special ways to treat mom to something nice without breaking the bank, knowing it's the thought that counts."

Most shoppers will head to specialty stores to find gifts (33.5%), but others will shop at department stores (32.4%), discount stores (24%), and online (29%).

The survey found 18-24 year olds are the most likely to shop at department stores among all other age groups; more than half (51.6%) will visit a department store in search of their perfect gift for mom.  But it's 25-34 year olds who will spend the most on mom, spending an average of $216.53.

Nearly two-thirds (63.9%) of those surveyed say they will shop for their mother or stepmother, while 22.5 percent will shop for their wife, 9.2 percent will shop for their daughter and 6.6 percent will shop for their grandmother.

Source: National Retail Federation

Easter Sales Decline And Shift Online

April 9, 2014

Average spending per person is forecast to decline this Easter, despite pent up demand from a long cold winter.  

According to new consumer research from the National Retail Federation, fewer people will celebrate Easter this year and average spending per person will decline to $137 from $145 last year.  Total spending is expected to reach roughly $15.9 billion.  A key reason for the decline is that the number of Americans who said they plan to celebrate Easter fell to 80.3% this year compared to 83% last year.

"The winter doldrums left consumers with a lot of pent up demand, and though many Americans may take a cautious approach to spending on Easter items this year, retailers are anticipating that warmer weather will easily put consumers in the mood to buy bright clothes, holiday decorations and more," said NRF president and CEO Matthew Shay.  "As one of the biggest holidays of the year, retailers are looking forward to increased customer traffic in stores and online, and will roll out promotions on everything from garden supplies and patio sets to apparel and grocery items as they help their customer prepare for the holiday."

Though fewer Americans will celebrate this year, families are still looking forward to their traditional Sunday meals.  Those who do plan to celebrate will spend the most on a grocery bill for a family dinner or Sunday brunch out; according to the survey, 85.7 percent of those celebrating will spend an average of $43.18 on a holiday meal, totaling $5 billion.

Since the holiday traditionally marks the ceremonial start to spring, 42.9 percent will purchase new spring attire, spending an average of $22.71; total spending on apparel is expected to reach $2.6 billion.  Additionally, nine in ten (89.3%) of those celebrating will stock up on Easter candy, spending a total of $2.2 billion.  Families will also spend on gifts ($2.4 billion), flowers ($1.1 billion) and decorations ($1.1 billion).

Another notable shift relates to the number of people who now indicate that smartphones and tablets will play a greater role in their Easter decision-making.  Roughly one-third of those who own tablets said they would use the device to research products and compare prices, with the behavior most pronounced in the 18-24 year old age bracket, where 44% plan to use their tablets.  A similar phenomenon was evident with smartphones, where 23.4% of overall respondents said they would use their devices to research products, while 37.1% of those 18-24 plan to do so.

Many will use their smartphones to check off their Easter shopping list.  Of those who own smartphones, nearly one in four (23.4%) will use their device to research products or compare prices.  Just 12.2 percent will make an actual purchase with their smartphone.  Nearly one in five (19.2%) tablet owners will make a purchase on their device, but most will simply research holiday gifts, apparel and other items (30.2%).

"Americans are eager to dip their toes in the fresh green grass this Easter and celebrate the day with friends and family," said Prosper Insights and Analytics director Pam Goodfellow.  "Though they are planning to trim their budgets in terms of spending on food, clothes and gifts, most will look for personal and fun items that won't break the bank in order to enjoy the day."

 Sources: National Retail Fereration and Retailing Today

Consumers Won't Splurge On Cupid This Valentine's Day

February 4, 2014

On the heels of a healthy yet modest holiday shopping season, cautious consumers aren't quite ready to splurge on Valentine's Day this year, continuing to keep their budgets in check.

According to the National Retail Federation's 2014 Valentine's Day spending survey conducted by Prosper Insights and Analytics, 54% of Americans will celebrate with their loved ones this year, compared to 60% in 2013.  The average person plans to spend $133 on candy, cards, gifts, dinner and more, up slightly from $130.97 last year.  Total spending is expected to reach $17.3 billion.

Valentine's Day will continue to be a popular gift-giving event, even when consumers are frugal with their budgets.  This is the one day of the year when millions find a way to show their loved ones they care," said NRF president and CEO Matthew Shay.  "Consumers can expect Cupid's holiday to resemble the promotional holiday season we saw just a few months ago, as retailers recognize that their customers are still looking for the biggest bang for their buck."

Gift-givers will find the perfect gift for their loved ones that fits their budget, whether it's candy, flowers, jewelry, clothing, an evening out or simply a greeting card.  Nearly half (48.7%) will buy candy, a third (37.3%) will give flowers and more than half (51.2%) will send greeting cards.  Nineteen percent will treat their significant other to something sparkly - jewelry spending will total $3.9 billion, and 37% will celebrate with an evening out, spending an estimated total of $3.5 billion.  Others will give more practical gifts like clothing (15.8%) or gift cards (14%) so their loved ones can have that item they've been eyeing in the store.

Men will spend $108.38 on gifts for their significant others - twice as much as women who will spend $49.41 on their special someone.  But Valentine's Day isn't just for couples; people will show their appreciation for family members (59.4%), friends (21.7%), teachers (20.4%) and colleagues (12.1%).  And like every holiday, Americans won't forget about their pets with 19.4% buying gifts for their furry friends, spending an average of $5.51.

"While fewer are planning to celebrate Valentine's Day this year, millions of shoppers will still make room in their discretionary budgets to send cards and gifts to loved ones or enjoy a special evening out," says Prosper Insights and Analytics Director Pam Goodfellow.  "Consumers can expect promotions on everything from flowers to date night dinner packages in the coming days, leaving plenty of ideas for those looking to spoil their Valentines."

Cautious consumers do their research when it comes to shopping, and many will purchase gifts online.  The survey found that 26.1% plan to shop online this Valentine's Day, flat with last year's 26.3%.  Many will turn to their tablets or smartphones before making their final gift decisions; 24% will research products or compare prices on their smartphones and 32.25 will do so on their tablets.

The NRF's Valentine's Day spending survey was designed to gauge consumer behavior and shopping trends related to Valentine's Day.  The survey was conducted for NRF by Prosper Insights & Analytics.  The poll of 6,417 consumers was conducted from January 2-13, 2014 and has a margin of error of plus or minus 1.2 percentage points.

Source: Retailing Today

Visa Holiday Shopping Stats

Visa provided some details on holiday transaction volumes and they are very encouraging.

• Nov 28 - $0.99 billion spent (up 30% from LY), 14 million transactions (up 29% from LY)
• Nov 29 - $1.7 billion spent (up 24% from LY), 21 million transactions (up 24% from LY)
• Nov 30 – $1.3 billion spent (up 37% from LY), 19 million transactions (up 33% from LY)
• Dec 1 - $1.2 billion spent (up 45% from LY), 18 million transactions (up 41% from LY)
• Dec 2 - $2.6 billion spent (up 28% from LY), 28 million transactions (up 29% from LY)
• 5 day total - $7.8 billion spent (up 30% from LY), 100 million transactions (up 28% from LY)
• Average transaction size $77.82