Nov 19, 2008 12:35 pm US/Eastern
Floridians Plan To Reduce Holiday Shopping
GAINESVILLE, Fla. (CBS4) ―
Despite a big drop in consumer prices, new projections from the University of Florida show retailers may be facing their worst holiday shopping periods in decades.
In surveys of more than 500 Florida residents conducted in September and October, Florida consumers plan to spend an average of $802 for the 2008 holiday shopping season, down from $1,324 in 2007.
The data showed the decrease in spending was across all income levels.
The numbers were dismal for both shopping malls, which can expect a 15 percent drop in the number of consumers planning to find their gifts there, to online shopping where retailers are expecting a drop of 1 percent.
Department stores and specialty stores could be at the most risk of serious downturns in sales. On the other hand, discount stores like Wal-Mart and Target could be able to pull middle and high-income shoppers into their stores.
One area that may actually perform fairly well is gift cards. More than 60 percent of buyers say they will spend the same or more on gift cards than in 2007. But, consumers are paying attention to where they are buying the gift cards from, as most are staying away from buying gift cards from retailers having financial difficulties.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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