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Nearly one out of three pets can expect less from its owner this coming holiday season, according to market research firm TNS Retail Forward, which provided further detail on upcoming holiday season this morning. The research firm in September forecast holiday sales growth of 1.5 percent, the weakest performance since 1991’s 1.2 percent growth.
The information, gleaned from the group's ShopperScape September consumer survey, found that 18 percent of pet owners planned to spend much less on their pets this holiday season and 14 percent planned to spend somewhat less on their pets, compared to 2 percent who planned to spend much more and 6 percent that planned to spend somewhat more.
About 60 percent planned to spend about the same on their pets. About 44 percent of consumers polled in the survey typically give their pets gifts.
Overall, pets will fare worse than children and spouses but better than friends and relatives outside the immediate family, the survey said. For example, 11 percent of respondents planned to spend somewhat more and about 25 percent planned to spend somewhat or much less on their children and spouses. Three percent planned to spend much more on their children and 2 percent planned to spend much more on their spouses or partners.
By comparison, fewer than one percent of consumers planned to give friends and non-immediate family much more, six percent planned to spend somewhat more and 40 percent planned to spend somewhat less (21 percent) or much less (19 percent).
Frank Badillo, senior economist at Retail Forward, noted that what was considered a “worst case scenario” for the economy when the forecast was issued has changed to a “best case scenario” given the confusion from the ongoing federal bailout situation.
Badillo now expects the economic crisis to peak in 2009 and recover in 2010, although the recovery could be delayed if a bailout proposal does not pass soon, he said.
He expects a bailout would ease the ongoing credit crunch. The current lack of credit is resulting in a lack of investment in business growth, which will lead to job losses and a continued weak economy.
The 2009 holiday season will probably not be much better than this year’s, he said.
Posted October 1, 2008 |