Holiday Shopping Survey 2010

Overview & Methodology

Objective – Obtain an understanding of the sentiment among small to midsized business (SMB) retailers and consumers toward the economy and determine its impact on the holiday shopping season.

Approach – Zoomerang distributed a survey to retail businesses with less than 1,000 employees, as well as consumers. Both parties were asked to provide insight into their confidence in the economy, its future and how it would impact the next few months of business and/or spending.

Results – In total, 340 retail businesses and 2,192 consumers completed a survey about their confidence in the economy and how it will impact holiday spending. The results showed that both groups are apprehensive about the holiday season.

Key Takeaways – - A majority of the SMB retailers are not confident in the economy at the moment.

However, most believe that the 2010 holiday season will be stronger than 2009.- The lack of confidence among SMB retailers means that a high percentage will not

increase their 2010 holiday budgets compared to 2009.- While consumers share a lack of confidence in the economy with SMB retailers, 62%

of consumers plan to spend the same or more this holiday season compared to 2009.- More than half of consumers plan to complete their holiday shopping both online and

in-person.- Of the consumers that bought luxury items in 2009, only 55% plan to do so again this

year.

Retailers

Retail SMB Confidence in State of EconomyOf the 340 retailers, 157 indicated they were not confident with the current

economy

Retail SMB Precautions Taken - Economy

20% have not taken precautions and are operating business as usual

Retail SMB Holiday Projections 2010 Despite the lack of confidence, retailers do believe the holidays will improve

compared to 2009

Retail SMB Steps to Ensure Most of Holiday Season5% have not taken steps to ensure they are getting the most out of this holiday

season

Consumers

Consumer Confidence in State of the EconomySimilar to SMBs, consumers lack confidence in the economy

Consumer Holiday Budget 2010 vs. 2009Despite the lack of confidence, consumers do not plan to decrease holiday budgets

Consumer Gift Giving 2010 vs. 2009A large majority plan on giving gifts to the same number of recipients

Consumer Holiday Shopping Location 2010Consumers plan on shopping online and in-store this holiday season

Consumer Gift Giving by Type 2009The economic situation forced people to focus on essential items (i.e. clothing)

Consumer Luxury Item purchase in 2010Of the 25% who purchased luxury items in 2009, only 55% plan do so again in 2010

Consumer Wish List – Gift for ThemselvesSimilar to purchasing gifts, consumers primarily hope to receive essential items

Appendix

Retail SMB Business LocationBreakdown of the top 10 states (out of 42) represented in the retail survey respondent base

State Percentage

California 11%

New York 9%

Pennsylvania 7%

Florida 6%

Michigan 6%

Texas 4%

Illinois 4%

Minnesota 4%

Ohio 4%

Oregon 4%

Colorado 3%

Retail SMB Business SizeNumber of permanent, full-time employees at the small to midsized businesses surveyed

Number of Employees Percentage

1 - 25 81%

26 - 50 6%

51 - 100 7%

101 - 250 3%

251 - 500 2%

501 - 1,000 1%

Retail SMB Role in the OrganizationAll of the respondents make or influence decisions that affect the business

Role Percentage

Owner/ Owner Operator 64%

Store Manager 24%

Partner 7%

Buyer 5%

Retail SMB IndustryBreakdown of the top 10 industries represented in the survey respondent base

Industry Percentage

Clothing 14%

Accessories/ Jewelry 9%

Gifts 9%

Furniture/ Home Furnishings/ Housewares 6%

Health/ Beauty 6%

Electronics/ Appliances 6%

Sporting Goods/ Hobbies 5%

Specialty Food/Beverage 5%Home Improvement/ Hardware/ Building Supplies 4%

Books/ Music 4%

Retail SMB Type of StoreMore than half of the respondents do not have an online presence

Type PercentageBrick and mortar/ Physical storefront/ Kiosk 51%

Ecommerce/ Online store 25%Both a physical store and an online store 24%

Consumer Age RangeMore than half of respondents are age 40 or older

Age Percentage

Under 20 3%

20 – 29 18%

30 – 39 18%

40 – 49 21%

50 – 59 17%

60 or over 24%