CHERRY HILL, N.J., Nov. 21, 2019 /PRNewswire/ --
- Grinches galore – More than half of survey respondents don't
intend to buy holiday gifts for people outside of their family and
friends
- Sentimental gifts on the outs – 35% of Americans plan to spend
the most on gift cards over any other gift type
- Big spenders - On average, men plan to spend nearly
$200 more than women this holiday
season
With the holiday season right around the corner, it seems many
Americans might be saying "Bah, humbug" to the time-honored
tradition of gift giving, with planned spending down nearly 30%,
according to the second annual Holiday Retail Report released by TD
Bank.
But as shoppers flock to the stores, apps and online to make
holiday purchases, the majority will be relying on credit cards as
their currency of choice.
TD Bank surveyed nearly 1,000 consumers to find out how they're
shopping for this holiday season and how they plan to pay for
gifts.
Shoppers revealed that they have an average of just
over $735 dollars in mind for holiday-related expenses this
season, with most (55 percent) adding they'll use their credit card
several times a week or more, later this year. For those planning
to shop with plastic, the average spend increases by nearly
one hundred dollars to $840.
Furthermore, 66% of buyers are leveraging their cards
specifically for rewards and perks, with 46% using plastic because
it's easier to use than cash.
Shoppers are also conscious of paying off the debt they've
accrued quickly. Last year 70% of respondents who financed their
holiday spending, paid off their holiday debt within three months
and 45% said they did so within just one month.
"The holiday shopping season is fun and exciting, but for many
it's also stressful," said Mike
Kinane, Head of U.S. Bankcard for TD Bank. "For consumers
who are determined to find perfect gifts for their loved ones while
sticking to a budget, the season can present a challenge to balance
giving with spending. Credit cards can make the shopping experience
more seamless and will ultimately place some money back in
shoppers' pockets through rewards and perks, but they must be used
judiciously to avoid accruing significant debt."
Spending like Scrooge
Among shoppers surveyed this season, overall planned spending is
down by nearly 30% this year, as opposed to 2018 where consumers
said they spent more than $1,000 on
holiday gifts.
Shoppers are spending frugally, with most of their planned
purchases allocated for only their significant other, children and
close friends. According to the survey, they plan to spend:
- $325 on their spouse or
partner
- $288 on each child
- $172 on friends
In fact, only 20% plan to buy a gift for their co-worker, 13%
will bring a gift for their holiday party host or hostess and 6%
plan to buy a gift for their babysitter or nanny.
Perhaps shoppers are reigning in their gift giving in exchange
for experiences. According to the survey, there's a surge in
celebrations and family gatherings. More than a quarter of
Americans say their spending on dining out, clothing and
entertainment spikes during the holiday season.
Mr. or Mrs. Claus – Who's the Bigger Holiday Spender?
Despite historical stereotypes, men are planning to spend nearly
$200 more than women this season
($834 vs $643 respectively). In addition, men were three
times as likely to say that they intend to make a major gift
purchase costing $1,000 or more (19%
versus 6% respectively).
On the other hand, women seem to be more aware of how much
they're spending and sensitive to what they've spent on holidays in
the past. Women are more than twice as likely as men to say they
plan to spend less this holiday season than last year (22% versus
10% respectively).
Women are also savvy users of store cards, as they're
significantly more likely than males to have and leverage retail
credit cards, giving them access to special discounts and
rewards.
"Regardless of how much you plan to spend this holiday season,
it's important to remember that the expenses you accrue now can
impact your financial situation well into the new year," said
Kinane. "For example, a credit card with a 22% APR will charge
shoppers $15 per month on a balance
of $840. If shoppers take too long to
pay their balance off, they're likely to cancel out any deals they
were able to take advantage of during the holiday season."
Survey Methodology
The study was conducted by research company Maru/Matchbox.
Respondents were composed of a targeted panel sample of 987
Americans who participate in holiday shopping. A random sample of
this size would have a margin of error of +/- 3 percent. The data
was weighted by age, gender and region to reflect the national
population. The online survey was fielded from October 29th to November 5th, 2019.
About MARU
Maru/Matchbox is a professional services firm dedicated to
improving its clients' business outcomes. It delivers its services
through teams of sector-specific research consultants that have
technology in their DNA, specializing in the use of Insight
Community and Voice of Market technology. Maru/Matchbox research
drives decision-making across all aspects of customer experience,
including innovation, product, branding, commercialization and
communications.
About TD Bank, America's Most Convenient
Bank®
TD Bank, America's Most Convenient Bank, is one of the 10
largest banks in the U.S., providing more than 9 million customers
with a full range of retail, small business and commercial banking
products and services at more than 1,200 convenient locations
throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas
and Florida. In addition, TD Bank
and its subsidiaries offer customized private banking and wealth
management services through TD Wealth®, and vehicle
financing and dealer commercial services through TD Auto Finance.
TD Bank is headquartered in Cherry Hill,
N.J. To learn more, visit www.td.com/us. Find TD Bank
on Facebook at www.facebook.com/TDBank and on Twitter at
www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD". To learn more,
visit www.td.com/us.
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SOURCE TD Bank