What's getting consumers into stores in time for the holidays - Guest Column - American public intent on getting on with their lives - Brief Article

DSN Retailing Today, Nov 19, 2001 by Carolyn Setlow

U.S. troops are on foreign soil, bioterrorism threatens at home, the U.S. economy is experiencing negative growth. But based on what American consumers are saying in recent RoperASW polls, this holiday season may not be quite as bleak as some retailers fear.

Granted, stores need to brace themselves for a challenging holiday season. However, while 1-in-4 Americans plan to spend less on gifts this year, the majority expects to spend the same as last year. And about 1-in-5 Americans plan to spend more.

Our research continues to show an American public intent on getting on with their lives, and this most definitely includes holiday plans. For most people, the economy seems to be playing a much larger role in their spending projections than does the war on terrorism. Although 26% plan to spend less this year than last year, more than half (54%) expect to spend "about the same amount." Eighteen percent say they will "spend more." A majority (53%) of those planning to spend less attributes the move to a changed "economic situation." The second most popular reason (21%) is fewer people on their shopping lists. Only 1% blames lower spending projections on the terrorist attacks--fewer than the 2% who blame higher prices.

Most Americans say they are shopping the same way they did a year ago. However, a substantial number has decided to shop less frequently in more high-density areas, suggesting a heightened concern for security. Twenty-four percent of Americans report shopping less frequently than last year in "downtown stores in the center of the city." Similarly, malls may enjoy less traffic this season; 22% of adults say they are shopping less frequently in big malls. An equal number of shoppers are both more and less likely to use the Internet (28%), representing a "washout" for e-commerce. The same is true for superstores/warehouse clubs. For catalogs, the loss outweighs the gain. Only one venue seems a clear winner from the trend to stick closer to home. Nearly one-fifth of all adults (19%) are shopping more in neighborhood stores than last year, while only 11% are doing so less often.

What do most people say will get them into the stores? Given the slowing economy, the chief draw is monetary--63% cite "discounts and sales on products or services" as "a major reason" for choosing a particular store. Following behind in second place is an "emphasis on customer service" (56%). Service is even more important than price cuts to those 60 and older. It is just as important as price cuts to men, Southerners and those planning to spend less on gifts this year.

Reflecting the current political climate, almost half (42%) of all adults say "promotion of products made in the USA" would encourage them to shop at a specific store. A third (34%) are attracted by a store's donating "a percentage of sales to the relief effort." Older adults attach more importance to "Made in USA" labels, while younger adults are more influenced by donations to relief efforts.

Other incentives include "frequent shopper promotions" (23%), "free gift with purchase" (23%) and "increased security" (22%). This last may be lower than anticipated because many shoppers already expect that retailers have beefed up security. Also consumers might not view this as an appropriate retailer claim.

With consumer confidence down and the economy slipping into recession, this is definitely a tough holiday season for retailers. Yet, our research indicates that stores can do much to help both their customers and themselves have as good a holiday season as possible under these circumstances.