Forbes asked consumers about their holiday spending and their preliminary plans for this spending season and found some interesting winners for the season. Prosper Spending Score reported the overall outlook for holiday gifts in 2014 increased by more than eight percent from last year.
While the amount of consumers planning to spend more on gifts remained stable at 9.1 percent, consumers budgeting less for gifts dropped 11 percent from 2013. Upper income households are the primary drivers of this year’s positive spending outlook. Consumers earning $75,000 or more per year maintain a Spending Score that is 13.2 percent higher than the overall average.
How do these numbers relate to retailers? The potential winners of this holiday season include Gap, Amazon, Costco and Macy’s. This is based on an index that includes shopper examination, spending scores and holiday gift budgets. JC Penny and Kohl’s have slightly lower outlooks for the holiday season.
While consumer spending may be more confident this year, there are many uncertainties regarding the economy, employment and personal finances that can drastically change consumer’s spending outlook. Retailers will have to wait and see how consumers will spend between now and November or December. One thing is certain; retailers will once again have a very competitive environment during the holiday season. Retailers must be able to effectively reach consumers, communicate and resonate with these shoppers to win the holiday race!