Deloitte Report: Consumers Suffering From Frugal Fatigue
Consulting firm Deloitte, LLP released a report today that says that consumers will be spending less on gifts this holiday season, but they will be spending more on clothing, entertainment and home furnishings. The report said that consumers are really tired of having to be so frugal.
Consumers who have deferred spending on home goods and clothing for themselves will come out to seek bargains, said Stacy Janiak, vice chairman and head of U.S. retail at New York- based Deloitte.
"It is a comeback, somewhat," Janiak said in a telephone interview yesterday. "There is a replenishment need that’s out there. Everyone pulled back last year and kind of made do with home furnishings and decorations" from previous years.
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Consumers like to spend during the holidays and are suffering from "frugal fatigue," said Marshal Cohen, chief industry analyst for NPD Group, a market-research firm in Port Washington, New York.
"The consumer's clearly telling us that they're beginning to get a bit tired of having to save money," Cohen said on a conference call hosted by Dow Jones Indexes and STOXX Ltd. yesterday.
54% of those surveyed said that they expect the economy to improve next year, which is a better result than last year's survey. 51% of those surveyed said that they hope to spend as much this holiday as they did last year, but the spending won't be on presents so much as on items for themselves.
