Holiday gift choices reflect consumers' new priorities
— -- Faced with rising unemployment and a dismal stock market, consumers are spending less on holiday gifts this year. But the presents they're buying may say even more about how Americans are coping with the economic slump.
"Christmas is already an introspective time, but it's become even more so with the economy," says Ken Nisch, chairman of the retail brand and design firm JGA. "People are re-evaluating Christmas, what's in their heart and what's under the tree."
The telling gift trend categories:
•Practical. Boots made up almost half of the 20 most-searched-for items last week on Nearby Now, an online mall inventory search service. The Things Remembered chain reports gifts that help people "save time and stay organized" are big sellers, especially engravable USB flash drives. And Wal-Mart said this week that nearly half of female shoppers polled by BIGresearch said they would like a gift card for food.
Celia Richa, 23, of Boston, asked her parents for socks, gloves and slippers this year and anyone else for cash so she can "put it toward the rent."
•High quality. Sam's Club CEO Doug McMillon says gold is selling better this year, suggesting "people are focused on buying things that last." Pearlparadise.com CEO Jeremy Shepherd says pearl jewelry sales are up more than 110% this year over 2006, but the average sale is down from $695 in 2006 to $292 this year.
•Comfort. Clothing and toys made of "plush fabrics" are selling better than they did last year, McMillon says. In keeping with the cuddly trend: Nearby Now's list includes the Berkshire Blanket Cozy Cuff Throw Wrap and Bath & Body Works' Sweetest, Softest Ever Plum Robe.
•Fun. Spencer's Gifts CEO Steven Silverstein says humor is especially hot this year. Lava lamps remain the 60-year-old chain's top seller, but joke books are huge. And the $5.99 reindeer that leave chocolate pellets behind them are flying off shelves.
"People really just need a little break" from all the economic news, Silverstein says.
