Recession Forces Holiday Shoppers To Weigh Gift-Giving Options

To trim the tree this holiday season, consumers are trimming the number of recipients that will receive gifts.

The economic downturn is forcing many people to play favorites with the loved ones in their lives. Among the many retail surveys analyzing the not-so-sudden collapse of materialism, American Express found that some consumers are nixing certain friends and family members over their pets.

Studies conducted by market research firm NPD note that people have chopped their Christmas lists on average from 16 to ten people. Marshal Cohen, the chief industry analyst for NPD, addresses every American's fear: “The understanding is if I show up without a gift, they’ll throw me out on the street.” Despite their fears, people must prioritize their holiday budgets and plans, and sometimes gift giving isn't a prudent, or even possible, option.

American households are expected to spend an average of $390 on Christmas gifts this year, down from $418 last year, according to the Conference Board, a business research group. What consumers are predicted to spend, however, often differs from what they actually spend. Market research firm NPD's website shows a sharp decline in technology revenue, rendering earlier predictions incorrect. November's decline in sales at nearly every major chain, specifically on Black Friday, made clear that priorities for shoppers have changed.

Last month, the International Council of Shopping Centers reported that gifts related to cooking and home entertainment are doing well with consumers. People are spending more time at home and shopping accordingly. Internet retailer Cardstore.com believes that thoughts will see more success than material goods as a survey conducted by the company revealed that around 20% of shoppers plan to send greeting cards rather than a gifts this year.

Hopefully that's enough to keep one from being kicked out of their sister's house.