Deloitte predicts spike in holiday shopping

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November 21, 2011 // UPDATED 2:17 pm - November 22, 2011
By: Sarah McKenzie
Sarah McKenzie

Seven out of 10 Twin Cities shoppers plan to spend more on holiday shopping this season, according to Deloitte's 26th annual Holiday Mood Survey — a shopping forecast better than the national average.

A majority of shoppers, 57 percent, said they planned to spend more because they felt more comfortable with their household finances. Nationally, that figure is 41 percent.

Twin Cities shoppers are expected to increase their holiday budgets by 13 percent, on average, spending $1,050 on gifts for themselves and others. The budget breaks down to about $420 on gifts and $630 on other items like holiday decorations and entertaining.

"Deloitte forecasted modest growth of 2.5 to 3 percent in retail sales during the holidays back in October," said Scott Erickson, a Deloitte partner. "Twin Cities shoppers appear prepared to support our previous prediction."

Shoppers are expected to be savvier this season, too, using smartphones and social media to find the best deals.

Deloitte commissioned the survey last fall, polling 5,019 consumers across the country, including 501 shoppers in the Twin Cities.

The survey comes on the heels of the University of St. Thomas holiday spending survey released last week, which also had an optimistic forecast. The survey predicted a 3.4 increase in holiday spending — a return to shopping levels typical of years before the recession.