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RAPAPORT...
With a little more than one week before Christmas gifts are open in the U.S., at least in the traditional sense, IBISWorld anticipates that season-specific gift spending will increase 1.8 percent year on year to $54.79 billion in December.
Jewelry and accessory gift spending is expected to increase 0.2 percent to $5.51 billion this month compared with one year ago. The personal care and cosmetics segment is expected to have the largest increase, up 3.3 percent to $5.7 billion. Total spending on gifts, food and decorations should increase 2 percent to $70.9 billion in December, according to the group. IBISWorld stated that although the economic climate in the U.S. has trended upward since the great recession, consumers are likely to continue to hold back on extravagant gifts. The group also concluded that retailers' efforts to push promotions and discounts earlier this year may backfire, as Internet and mobile shopping reduces the need for consumers to rush out and find good offers. More consumers are checking prices online and shopping for the best bargain, leaving retailers to compete with one another by lowering their prices. Overall, despite improving economic conditions, competitive pricing and savvy customers will keep sales from breaking records, IBISWorld stated.
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