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 THE STAT 26Percentage of wireless customers who use their cell phones to take picturesMore Vitals
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DECEMBER 7, 2004
It's a Happy Electronics Holiday Shoppers from all over say digital goodies of all kinds are what they're buying this year No matter what their Christmas-gift budget constraints, where they live, or what they do, holiday shoppers who spoke to BusinessWeek this holiday season have a lot in common: Electronics gifts top their lists. They're visiting Best Buy.com (BBY ) and Wal-Mart.com (WMT ) to comparison-shop for video games, digital camera, and CD players. And they're also going to Amazon.com (AMZ ) for books, DVDs, and music. They're also heading to Target (TGT ) stores for clothing, but most are avoiding Wal-Mart stores for a variety of reasons. And even if they're feeling flush, they're spending the same on holiday gifts as they did last year or are cutting back, citing the need to save for college and or retirement. Online shopping is becoming more popular, with free shipping a big plus. Here are edited excerpts of what some shoppers recently told BusinessWeek Special Correspondents Ann Therese Palmer and Michael Eidam: Caren Flewellen, 42, an African-American former assistant product manager with Alberto-Culver (ACV ), whose current assignment is Louisville-based stay-at-mom for her four elementary school-age children, expects to spend $1,500. That's about 15% less than what she spent last year. "Things aren't terrible, but we're trying to get more efficient and have a better handle on our expenses," says Flewellen, whose husband, Marvin, is a bond portfolio manager. They're targeting money not spent on gifts for college and retirement funds. Flewellen's says online shopping will account for 90% of her purchases this year, up from 50% last year. She can shop "at night while watching Jay Leno," eliminate impulse purchases, and take advantage of free shipping for gifts to out-of-town relatives and friends. She'll spend 40% of her budget on electronics (Leapfrog, Playstation 2, Game Boy Advance SP, a digital camera) with the remainder evenly distributed among books, clothing, and toys at Target, Toys 'R' Us (TOY ), and Best Buy. Why not Wal-Mart? "I'm a fan of Wal-Mart, but I'm not shopping there for Christmas," she says. "I can go to Toys 'R' Us and not worry about out-of-stocks or finding a substitute. Its selection is vast. I can do what I want to do at Toys 'R' Us in less time." Loren Doppelt, 47, is doubling his Christmas spending, to $1,200 this year, since he recently returned to work as a marketing director at a suburban Chicago kitchenware company. He was laid off in July, 2001, after the division he managed for a tool manufacturer was sold. On Black Friday, he and his wife, Stephanie, an administrative assistant, visited Kohl's (KSS ) for clothing, Target, where nothing "grabbed them," and Wal-Mart for stocking stuffers like toiletries. Like the Flewellens, they're also shopping for a digital camera, as well as clothing and books. "Being employed again is huge relief going into the holidays," he says. "But I don't want us to go too crazy on Christmas spending." Amanda Stone, 53, a suburban Tucson organizational development consultant, has cut her shopping list in half, to 20 people, eliminating service providers, some extended family, and business associates. She plans to spend $1,800 this year on gifts and holiday entertaining. "What I was doing in past years was becoming overwhelming in terms of time and energy," says Stone, who is married to a TV station assistant news director. On a run to Office Max for office supplies, she discovered RCA CD players selling for $30 less than last year and bought five. She has also bought online at Sharper Image (SHRP ), Brookstone (BKST ), and Mikasa. At the local Target, she bought table linens, kitchenware, candles, and candlescapes, but she won't go to Wal-Mart. "I don't need to save 20 cents that much that I'll support a company whose personnel policies I don't believe in," she says. "I don't like their corporate philosophy." Wendy Staebler, 56, shopping at a suburban Atlanta Target, is significantly reducing holiday gift purchases since insurance companies haven't reimbursed her anything yet for damage caused to her Penascola (Fla.) home by Hurricane Ivan. One of her property insurers went into receivership immediately after the hurricane. "Very few people I know have received a cent except from the Federal Emergency Management Agency," reports Staebler, whose FEMA check was for $474.74. So, instead of shopping at Saks Fifth Avenue (SKS ), she's buying books and clothing at Sam's Club and TJ Maxx (TJX ). Jesus Martinez, an operations officer at the World Bank, says 50% of his planned purchases will be personal electronics, up from 10% last year. He's holding to last year's spending limit -- $1,000 -- for his 15 gift recipients, primarily family in Puerto Rico, even though he's "feeling pretty good." Says Martinez: "Last year several of my friends were out of work. This year everyone has jobs." The Washington (D.C.) resident already has walked the floor at the Pentagon City Best Buy looking for MP3 players, Walkmans, CDs, and DVDs for his nephews, and he's preparing to comparison price at Best Buy.com and Wal-Mart.com. He's increasing online shopping to 60% this year, motivated by the convenience, cheaper prices, and sales tax savings. "In Virginia, sales tax is 4.5%," he says. "It's even higher here in D.C. Shipping online is usually free, another consideration since most of what I purchase is going to Puerto Rico. This gives me more money to spend."  Edited by Patricia O'Connell
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