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Affluent Market May Disappoint Retailers by Spending Less for December Holiday Gifts
About 25% of the total estimated December holiday (Christmas and
Hanukah) gift market will be produced by the wealthiest 10% of
U.S. households, despite a reduction of 1.6% in their spending
to about $57 billion.
Approximately two-thirds of the respondents expect to spend the
same amount for holiday gifts this year as last year. The number
who expect to spend "less" (21%) is about double the number who
expect to spend "more" (11%).
The survey found the affluent planned expenditures of almost
$2,800 per adult, which is about 5 times the $565 average for
all adults in a survey recently conducted for The National
Retail Federation.
These are the major findings of a new 23 page/20 table report
"The Affluent Market for Christmas and Hanukah Holiday Gifts:
Forecast of December Holiday Gift Expenditures and the
Recipients, Types, and Retail Sources of the Gifts".
Signaling the challenge retailers face in achieving the 5%
increase in 2005 holiday gift sales projected by The National
Retail Federation and The International Council of Shopping
Centers, these results were obtained from the recently completed
Fall 2005 "Affluent Market Tracking Study #8" by The American
Affluence Research Center.
A continuing series of twice-yearly surveys, these studies track
the 12- month economic outlook and spending plans of the
wealthiest 10% of Americans, the 11 million households
representing about half of all consumer income and
spending and
a third of the total US economy. These are the consumers who
have helped the more upscale retailers to out perform others in
recent years.
The latest survey was designed to also answer such questions as:
1. What do millionaires want to receive as holiday gifts this
December? 2. How much will the affluent spend for holiday gifts
for different recipients this year? 3. Who will receive gifts
from the affluent this year? 4. What types of gifts will the
affluent give this year? 5. Where will the affluent buy their
gifts this year? 6. When will the affluent do most of their
holiday gift shopping?
Highlights of the national survey of 448 men and women in the
wealthiest 10% of U.S. households can be found on the AARC
website, www.affluenceresearch.org.
The survey participants have an average income of $308,000 and
an average net worth of $2.7 million. The survey has a 5% margin
of error at the 95% confidence level.
About the author:
Ron Kurtz is a principal of The American Affluence Research
Center and The Management Resource Group. Both companies provide
marketing research and strategic planning services to prominent
clients in the travel and hospitality industries, especially
those targeting the affluent market. Ron earned his MBA at
Harvard Business School.
For further information: http://www.affluenceresearch.org and
http://www.mrgconsultants.com
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