NPD Releases 2006 Holiday Survey Results

Leading consumer and retail information company, The NPD Group, has released the results of its Annual Holiday Survey for the 2006 holiday shopping season.

"Overall, I think this holiday shopping season will look much the same as last year with growth, but modest growth," said Marshal Cohen, The NPD Group's chief industry analyst.

The biggest beneficiaries of this growth will be in the retail categories that contain "traditional" gift items. Gifts like clothing, toys, books, music and fragrances look to be gaining traction. NPD's survey respondents said they intend to spend more money on clothing and toys this year versus last year.

"This season will be marked by the return of shoppers to the 'tried-and-true' gift items. Things like clothing and toys should see gains," Cohen said, adding, "Consumer electronics will make a contribution to this season's growth, with notebooks and flat-panel televisions doing well."

On the home front, the NPD survey shows consumers are planning to spend more on everything from Home Décor to Home Improvement to Home Appliances. "Despite recent economic news about falling home values, I think consumers will look to 'feather their nests' this season," Cohen said. "Everything from small decorative items to small and large domestic appliances will contribute to growth in this area."

According to the survey, 18.5 percent and 13.5 percent of holiday shoppers expect to shop for Home Decorations and Home Improvement, respectively, this holiday, which puts them just below the top 10 Categories of expected purchases for 2006.

Where is this holiday shopping going to take place this season? Consumers tell The NPD Group that they expect to shop primarily at Discount/Mass Merchant retail outlets. Retail chains and online shopping round out the top three places people plan to shop this year.

Last but certainly not least, how much do shoppers plan to spend on their holiday gifts? Slightly more than last year: $728 this year vs. $681 in 2005. That's a similar gain to what was seen in 2005 which was up over 2004 from $655.

When asked about the price of gas and its impact on holiday shopping, Cohen replied, "It's interesting to note that rising gas prices and their impact on holiday shopping was all the talk earlier this year … looks like that's not going to happen. Gas prices are falling, and 74 percent of our panelists say that gas prices won't dampen their spirits and they will shop on!"