High Energy Costs to Cut Holiday Spree

December 11, 2005 – Vol.10 No.38

HIGH ENERGY COSTS TO CUT HOLIDAY SPREE.

The Conference Board, one of the world's leading business membership and research organizations, produces two numbers keenly watched by economists, investors and political leaders: the Consumer Confidence Index and the Leading Economic Indicators. It provides these indices for the U.S. and other nations. People trust the Conference Board.

The group commissioned TNS, the world's largest custom research company, to take a poll to determine the impact of higher energy costs in the 2005 holiday season.

In the survey of more than 10,000 - with 70 percent responding - here’s what they had to say.

--- Overall among Internet shoppers about a third said they would increase their online shopping.

--- Among modest earners, under $35,000, close to 53 percent said their first recourse against high energy costs will be fewer trips to the store.

--- Among more affluent households, incomes over $75,000, more than 60 percent plan to make fewer trips to stores.

--- Nearly a third will curtail their spending per person and 27 percent will reduce the number of people on their shopping list.

--- More than 22 percent plan to shop more online to help defray the impact of rising energy costs.

--- And what products will those online shoppers buy? 47 percent said books, apparel and shoes. 44 percent and 39 percent, respectively, said DVDs / videos / movies and toys and games. One-third said they will purchase gift certificates.

The Christmas holiday season is considered the make-or-break time of the year for many U.S. retailers. Those with Internet shopping outlets (most major retailers) should feel more secure than those with bricks and mortar stores only. One way or another higher energy prices will have an effect on the economy. Visit the Conference Board at http://www.conference-board.org/ .