Survey: Holiday gift spending to rise 9.1 percent

It's going to be a Merry Christmas for retailers this year, according to Unity Marketing's latest survey of more than 700 gift-givers who expect to spend $949 on average, compared to $870 in 2005.

"Throughout the 2006 year, consumers have been generous with their gift spending," said Pam Danziger, president of Unity Marketing and author of the new book Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience, in a statement. "We don't expect that to change during the fourth quarter, especially now that gasoline prices have dropped and the stock market is going through the roof."

The study notes that more people will turn to specialty stores in lieu of discount department stores this year. Of those surveyed, 69 percent said they'd hit discount stores, down from 78 percent in 2005.

"With consumers feeling more flush this season, the pull of cheap prices offered by the discounters will be less compelling. Shoppers are likely to turn to stores where they will enjoy a more shopper-friendly environment," Danziger said. "Discounters will still get plenty of action this year, but significantly fewer shoppers plan on shopping at discount destinations this year than did last year."

She added that 2006 could mark the turning point in Wal-Mart's stranglehold on retailing in America.

"Their competitive edge is slipping as shoppers decide they want more from the time they spend shopping than just cheap prices. They want an engaging and entertaining shopping experience that Wal-Mart simply doesn't provide," she said.

Another contributor to a good holiday selling season this year is the tendency for shoppers to start early in their quest. According to Unity Marketing, about one-third of shoppers have already spent an average of $300, getting a jump on the season rush. That's up 16 percent from the same period last year.

In terms of spending, 58 percent say they will spend the same this Christmas, while 18 percent plan to spend more. Among those who plan to increase their gift budget, the average amount they expect to increase their spending is 12.5 percent.