Consumer Spending Edging Up Despite Economic Uncertainty
ST. LOUIS, (SLFP.com), November 23, 2003 - Consumers' biggest holiday shopping headache this year is figuring out what to buy for their families and friends and many may begin the shopping process online or with a catalog well before setting foot in a store.
According to a RoperASW study, which surveyed 1,000 U.S. adults, 19 percent of Americans plan to increase their holiday gift spending, compared to 16 percent in 2002. Additionally, almost half of consumers (48%) plan to spend $500 or more and the average spending amount (among those who will be purchasing gifts) will increase from $853.10 in 2002 to $929 in 2003. Americans also plan to add another person to their gift lists, with the average number of people increasing from 11 in 2002 to 12 this season.
Family and friends will have a significant impact on holiday shopping decisions as they ranked first when asked the major source for gift ideas with 76 percent of consumers turning to them for advice. Sixty percent say in-store sales promotions have a major influence, 53 percent cite print advertising, 37 percent cite TV advertising followed by the Internet at 23 percent and radio advertising at 18 percent.
"A fundamental shift has occurred in today's consumers' shopping behavior. Where they shop and where they purchase are not necessarily the same place any longer. They may begin the shopping process online or with a catalog well before setting foot in a store," stated Phil Kowalczyk, Kurt Salmon Associates' Managing Director, North America.
- 33% plan to do 20% or less of their shopping via non-store venues this year
- 28% plan to do between 21% and 30% of their shopping this way, and
- 12% plan to do more than half of their holiday shopping via non-store formats.
"Consumers expect and even demand multi-channel brands today. The old adage that the key to success in retailing is 'location, location, location' has come to mean that successful retailers are able to connect with their target consumers in all shopping venues. With an abundance of choices and limited time, today's consumers are not going to go looking for you," said Kowalczyk.
"Consumers want ideas, choice, and convenience," said Steve Nevill, KSA merchandising specialist. "Price is not always the primary value driver. Retailers who connect with those customer needs this holiday season will be remembered and rewarded in 2004."
Thanksgiving Travel Projected to Rise for Both Auto and Air Travelers
ST. LOUIS, (SLFP.com), November 23, 2003 - Traditionally, Thanksgiving marks the start of winter holiday travel and this year shows a strong beginning to the season with airlines offering more than a million extra seats and gas prices down about 24 cents.
AAA projects that 36 million Americans will take a trip of 50 miles or more from home this Thanksgiving weekend holiday. This is 2.4 percent higher than the 35.2 million who traveled last year.
Approximately 31.1 million travelers (86 percent of all holiday travelers) expect to go by motor vehicle, a 2.5 percent increase from the 30.3 million who drove a year ago. Another 4.6 million (13 percent) plan to go by airplane, up almost 1 percent from last Thanksgiving. A projected 300,000 vacationers (1 percent) will go by train, bus or other mode of transportation.
"The travel season finished strong this summer and we expect the trend to continue through the Thanksgiving holiday," said Dawn Duffy, AAA spokesperson. "Considering AAA's projections, travelers should allow plenty of time for crowded roadways, busy airports and tight security."
Auto travelers will find gas prices down about 24 cents from the all-time high set before this year's Labor Day holiday. The national average of $1.50 for a gallon of self-serve unleaded is about 4 cents per gallon higher than last Thanksgiving.
The greatest number of Thanksgiving auto travelers will originate in the Southeast with 8.8 million; followed by the West, 6.9 million; Midwest, 6.8 million; Great Lakes, 6.3 million; and Northeast, 2.3 million.
The West and Southeast are expected to produce the largest number of air travelers, each with 1.2 million, followed by the Northeast and Midwest with 800,000 each; and Great Lakes, 600,000.
Cities top the list of preferred destinations this holiday with 38 percent of the travel volume. Towns and rural areas are the destination for 31 percent of travelers, followed by oceans and beaches, 10 percent; mountains, 8 percent; lakes, 3 percent; and theme/amusement parks, 2 percent. Another 4 percent responded with other and 4 percent said they didn't know.
Airlines are offering more than a million extra seats, but overcrowded airports, increased security and last minute changes still create challenges for holiday travelers. Current flight schedules indicate that between Thanksgiving and New Years, airlines will offer over a million more seats than in 2002, according to OAG, the leading source of independent flight schedule information for more than 930 airlines.
The most significant increase in seats occurs during the week of December 22, when seat counts will jump by more than 5% over last year, with an additional 800,000+ seats available.
$7.4 Million in Additional Assistance for Former TWA Workers
ST. LOUIS, (SLFP.com), November 26, 2003 - The Department of Labor (DOL) has approved additional assistance for laid-off airline workers in Missouri. In a press conference with Secretary of Labor, Elaine Chao, the Senators Kit Bond and Jim Talent announced that former-TWA and American workers will receive $7.4 million in National Emergency Grant (NEG) funds.
"These funds are crucial in helping the former-TWA and American workers in St. Louis and Kansas City who have been laid-off," said Bond. "I am particularly pleased with President Bush and Secretary Chao's rapid response in providing assistance to these workers. The Department of Labor did not receive the State of Missouri's request for additional assistance until late October, and in just a little over three weeks, the Administration has responded with a generous grant to help these folks. Clearly, the Administration recognizes the unfortunate circumstances that have plagued the Airline Industry in Missouri, and the need to get these employees back to work."
"President Bush and Secretary Chao delivered this assistance about as quickly as I've ever seen in my years in public life," said Sen. Talent. "I've talked personally with former-TWA and American pilots, flight attendants, mechanics and other employees who are being laid-off or concerned about being laid-off. Many of these workers have dedicated their entire careers to TWA, and they have families, mortgages and other responsibilities. This assistance is critical for them and for Missouri's economic recovery. I appreciate the Administration's quick response to our request and for recognizing how important this assistance is for Missouri jobs."
In October, Bond and Talent asked Secretary of Labor, Elaine Chao, for additional federal assistance for the pilots, flight attendants, mechanics and other employees that have lost their jobs as a result of the American Airlines' restructuring plans following its acquisition of Trans World Airlines' in 2001. Earlier this year, Bond and Talent were instrumental in the DOL's release of $1.3 million for former-TWA and American workers.
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