Holiday 2013: New Survey Indicates Americans are Curtailing Spending

With the US economy still far from robust, a new survey from  Discover Financial Services reveals that Americans are planning to celebrate this holiday season without all the fuss and expense. According to the latest Discover Annual Holiday Shopping Survey, gift cards are the most popular gift of the season, both to give and receive, and a majority plan of Americans plans to skip the hustle and bustle of holiday travel.    Consumers will also be spending less on Apparel/Fashion this holiday. For the past few years, consumers have been getting more selective about how they shop and spend during the holidays season.   The findings from the Discover Survey indicate that most of us will be enjoying a cheap and cheerful holiday, forgoing buy new apparel,  entertaining at home and keeping gifting on a tight budget.

Shopping for new Clothes & Apparel will Decline this Holiday Season

When it comes to holiday fashion,  it looks like most of us will be shopping our closet instead of buying new items.  According to the survey, 80 percent of Americans are planning to spend less than $500 on apparel  with an even split of 40 percent to spend less than $100 and 40 percent to spend $100-499; only 10 percent plan to spend $500-$999.

o   13 percent of consumers are planning to give apparel as a gift while 8 percent hope to receive it

o    7 in 10 (71 percent) Americans plan to shop for apparel on Black Friday and Cyber Monday  (no surprise as those are typically when great savings on apparel are offered)

Entertaining at Home Will Be More Appealing Than Ever

When it comes to entertaining this holiday, staying at home is the favorite way to celebrate according to Discover’s survey data. Most Americans are  planning to host Thanksgiving and/or Christmas Day in their homes, followed by  35 % planning to host Christmas Eve, 25% planning to host New Year’s Eve and 21 % planning to host a New Year’s Day celebration at home. When hosting their holiday parties, consumers are finding ways to be festive without breaking the bank – 41 percent expect to spend between $100 and $300, and 22 percent expect to spend between $300 and $500.  Dinning out, especially when drinks are served, really drives up holiday costs, so keeping thing simple and entertaining at home is a great option for a cheap and cheerful holiday season.

 Potluck Resurgence: Consumers Will Keep Holiday Gatherings Simple

 As Americans manage expenses this season while hosting holiday parties, many will invite their guests to contribute to the merriment. Sixty-two percent say they will invite guests to bring a dish, and 39 percent will invite them to bring a beverage.   The tradition on the “pot-luck” supper will be revived with people sharing dishes.

Consumers will save in other ways, including cutting postage costs by sending out email invitations instead of paper invitations (Paperless Post)  at 24 percent, and offering small bites at parties instead of a full meal, at 21 percent.

When it comes to celebrating the holiday season with friends, 46 percent will host or attend a holiday-themed party and 21 percent will let someone else do the cooking and go to a restaurant.

Top Holiday Gifts of 2013

 Gift cards, perhaps one of the simplest gift options, are also what consumers are asking for most. In fact, 23 percent of Americans are somewhat likely to toss or never use a gift they receive for the holidays if they don’t like it, making gift cards the safer choice. If the price is right, shoppers are also willing to buy things for themselves. Plentiful deep sales and retailer promotions will encourage 66 percent of shoppers to “self-gift.”

Staycations : Consumers will Stay  Home for the Holidays

 Although the holiday season is a peak time for travel, most Americans plan to stay in town this year. Sixty percent of them expect to stay local, while 26 percent plan to travel or take a vacation. Domestic destinations are the most popular for holiday travel, 81 percent; followed by the Caribbean, 11 percent; and Europe, 10 percent.

 The Discover Annual Holiday Shopping Survey was an online poll of 1,005 American adults, 502 male and 503 female. The poll was conducted online between Sept. 24 and Oct. 22, 2013, by Penn Schoen and Berland.

What do you think of these findings readers? They sound right one to me, and I think many of us have been entertaining at home and sharing dishes at the holiday table for years now.