Improving Consumer Confidence Points to Merry Holiday Season

New survey finds that consumers are feeling better and wiling to splurge a little.

October 15, 2014

CHICAGO – Consumer confidence hit yet another high in the third quarter of 2014 after zigzagging in previous quarters this year, according to the latest IRI MarketPulse™ survey. This uptick is good news for marketers, since shoppers rolling into the holiday season on a high note are willing to spend a bit more.

In fact, the National Retail Federation is predicting that retail sales will be up by 4.1% in November and December. Overall, 2014 holiday sales are expected to rise to $616.9 billion, which is more than a 3.1% increase over 2013.

”Marketers have a lot to feel good about as we enter the 2014 holiday season,” said Susan Viamari, editor, thought leadership, IRI. “Despite the bumps along the road, consumer confidence is definitely on an upward trajectory, and this is clearly evidenced in holiday spending plans.”

Constructed against a benchmark of Q1 2011, IRI’s Shopper Sentiment Index provides deep insight into how the economy is impacting consumers and changing how they approach grocery shopping. The index provides perspective in terms of price sensitivity, brand loyalty and changes in spending required to maintain desired lifestyles. The latest index across all ages surveyed for Q3 is 121.4, compared with 108.5 in Q3 2013, which is the highest point the index has reached since it was launched in 2011. In addition, 20% of Americans feel that their financial situation has improved during the past year compared with 17% in Q3 2013. And, 25% also expect continued improvement in the coming months — a sizable jump from a year ago.

Consumers’ sunnier sentiment is expected to bring good tidings to marketers. Consumers say they will be getting into the spirit and are planning to spend just a bit more on holiday celebrations. Overall, 5% of consumers say they will be spending more on food and beverages in 2014 compared with 4% in 2013 and 3% in 2011. Furthermore, budgetary cutbacks are becoming less pervasive, with approximately a quarter of consumers (28%) intending to spend less this year versus a year ago compared to 33% in 2013 and 36% in 2011.

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