ECONOMIC SNAPSHOT | HOLIDAY SHOPPING

Well spend more this year

By MARIA HALKIAS
Staff Writer mhalkias@dallasnews.com

By MICHAEL HOGUE
Staff Artist mhogue@dallasnews.com

The number of people planning to spend less than last year is at its lowest level in seven years nationwide, according to Deloitte. The firms annual survey found that people in the Dallas area will spend more than the national average this year. And while online topped the list of where people plan to shop in the U.S. for the first time this year, discount and value department stores remained at the top for Dallas respondents. The Internet came in second. Traditional department stores ranked third in both the U.S. and Dallas. About 66 percent of shoppers overall, and 63 percent in Dallas, said they want to support their local economy when they decide where to shop.

Consumer spending outlook

U.S. consumers intentions to spend less are at the lowest levels in seven years: Consumers expected holiday spending change from prior year
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 00 01 02 03 04 05 06 07 08 09 10 11 12 13 18% 36% 64% 82% Recession

Opinion of current economy

Optimism is rising, as fewer respondents feel we are still in a recession: 54% 50% 2011 49% 2012 2013
32% 37% 32%

Spend more/same
59% 62%

71%

16%
41% 38% 29%

11% 10% 4% 2% 3%
Healthy Weak/slowly recovering from a recession Weak, and heading back into recession Still in a recession; theres been no recovery

Spend less

Recession

Where consumers expect to shop

For the first time, Internet ranks No. 1 on the list of venues respondents expect to shop; discount/value department stores show the biggest drop among venues.
Internet (including auction sites) Discount/Value department stores Traditional department stores Electronics/Office supply/Computer stores Off-price stores Warehouse membership clubs Toy stores Outlet stores/centers Restaurants/fast food establishments Home improvement stores Sporting goods stores Low-price dollar stores Specialty clothing stores Drug stores Supermarkets

Dallas
$501 $421
47% 44%

U.S.
$433 $270

How much will you spend for the holidays?

Dallas shopper habits

42% own a tablet and plan to use it to: 55% Get store locations

28% 21% 21% 20% 20% 20% 17% 15% 14% 14% 13% 13% 13%
Home/ holiday furnishings Any other holiday spending Entertaining at home Non-gift clothing for family, self

-7% vs. 2012

Gifts

Socializing away from home

61% Shop/browse online

$232

$159

$220 $136

53% Compare prices

76% own a smartphone and plan to use it to: 41% Locate a store

$170 $81

$134

$87 30% Get discounts,

coupons and information

31% Check prices

Cash ranks No. 1 as the gift respondents would like to receive, at 37%

Cash ranks No. 4 as the gift respondents expect to give, at 27%

The bottom line

Dallas respondents plan to spend 29 percent of their holiday budget on gifts, which is consistent with other markets. The largest outlier compared to other regions is in the category of socializing away from home. Surveyors expect to spend approximately 26 percent of their budget on travel, hotels, restaurants, etc. Dallas folks enjoy taking advantage of travel deals and other specials. Gene Monacelli, a principal at Deloitte Consulting LLP If people are spending more at home to entertain that may be a reflection of the consumer not feeling as confident to go out and spend more. But when I can fill up my gas tank for under $2.90 a gallon, I think thats a positive tailwind. Many are concerned with the six fewer days between Thanksgiving and Christmas. That can have an impact on purchases that people make for themselves. Al Meyers, director retail and consumer practice at PwC This year, Im doing all my shopping in December. Last year, I started in July. As I sit here before Thanksgiving, Im sorry I didnt start earlier. I expect to shop the same number of days to complete my gift list as I would have otherwise. But I'll be more rushed, so maybe in the bigger scheme of things, six fewer days does make a difference. Maria Halkias, staff writer, The Dallas Morning News