Coaxing the givers out of would-be Grinches

Knowing in advance the current trends on consumers spending habits and what is pushing their intentions on what to buy and when is a key in increasing your sales for the upcoming 4th quarter as this is the time to be aware in advance for Holiday spending habits. Remember Christmas is just around the corner.

Review as merchandisers and marketers are going to have to be extra-savvy to coax the givers out of would-be grinches. Insight in this report on the economy and the personal finances of the consumer and it is only on TVBR.com.

Economy

Coaxing the givers out of would-be Grinches

Knowing in advance the current trends on consumers spending habits and what is pushing their intentions on what to buy and when is a key in increasing your sales for the upcoming 4th quarter as this is the time to be aware in advance for Holiday spending habits. Remember Christmas is just around the corner.

Review as merchandisers and marketers are going to have to be extra-savvy to coax the givers out of would-be grinches.

With gas prices tempering in the mid-$3 range, consumer confidence rises for the second month in a row...this month, 28.3% are confident/very confident in chances for a strong economy, rising from 23.6% last month and the highest reading since January (33.5%).  Confidence, though, has yet to rebound from record lows reached in June and July, remaining almost 13 points behind September '07 (41.2%).
 
Game...set...we're ready for the match-up...with the conventions concluded and the VPs selected, the court has been set for major changes on Capitol Hill.  This, coupled with last month's Russian/Georgian conflict and hurricanes brewing down south, has likely led to increasing concerns regarding political and national security issues...25.8% continue to worry, up more than a point from last month and almost ten points from one year ago (16.1%).
 
It's not the news that retailers want to hear heading into the holiday selling season (more on that in "Retail"), but consumers are hedging more toward practicality in September...close to half (49.4%) say they've become more practical in the last six months, up about a point from August (48.6%) and more than 12 points from September '07 (36.7%).
 
Merchandisers and marketers are going to have to be extra-savvy to coax the givers out of would-be grinches...this month, the majority (56.1%) maintains they're focused on needs over wants in purchasing...while down a point from August (57.2%), this reading is about 13 points higher than September '07 (43.2%), a harbinger of continued slow sales for stores.
 

Personal Finance

Increasing confidence has appeared to offset the recent rise in the U.S. unemployment rate, as consumers' outlook for the employment environment continues to improve...this month, 45.7% contend there will be "more" layoffs in the next six months, lowering from the 54.0% who felt the same in August.  Two in five (44.3%) feel layoff levels will remain the "same" (v. 37.7%), while one in ten (10.0%) hope for "fewer" (v. 8.3%).  Personal concerns about becoming laid off, though, remain unabated...6.7% continue to fear the pink slip, flat with August (6.8%) and rising from 4.0% one year ago.
 
With 46.1% maintaining that they aren't saving enough for future needs, consumers remain vigilant about feeding their financial portfolios...paying down debt (35.8%) and decreasing overall spending (32.2%) remain top priorities, increasing from 32.0% and 25.8% in '07, respectively.  A rising number of consumers are also planning to increase savings (25.7%) and pay with cash more often (21.8%):

The Fannie May and Freddie Mac bailouts may have led to a short-term uptick in the stock market, but will investors remain ready to buy?  In September, the majority remain confident in Wall Street, with 53.7% saying they would definitely/probably invest, up half a point from August (53.2%).  One in ten (10.3%) investors are poised to "buy" in the next three months, while 5.6% intend to sell, up slightly from August (5.0%).
 
With drivers "enjoying" lower average gas prices in recent weeks, more seem to have eased their brakes on spending...while 83.3% continue to be affected by fluctuating pump prices, slightly fewer are reducing dining out, decreasing vacation travel, and reducing spending on groceries and apparel compared to August.  However, with pump prices still averaging $1/gal more than last year, major cutbacks in spending are still evident compared to '07:

With the amount drained on gas directly affecting the disposable income available to spend on other goods and services, retailers may be pleased to find increasing optimism regarding pump price predictions through Halloween.  This month, one-third (34.0%) contend that gas prices will rise, lowering from the 39.5% who felt the same about the direction of prices come Labor Day.  Almost half (45.4%) expect them to remain the same, while one in five (20.7%) portend a decrease.  Drivers are predicting an average pump price of $3.73/gal on Fright Night, $0.20 below the $3.93 anticipated for Labor Day.
  
(source: BIGresearch - economic briefing www.bigresesearch.com)