Study: Twin Cities residents to slash holiday spending
Minneapolis / St. Paul Business Journal - by Katharine Grayson Staff Writer
Twin Cities residents will cut their holiday shopping budgets by about 11.7 percent this year, a belt-tightening that will hit regional malls and small retailers hardest, according to a study released Wednesday by the University of St. Thomas.
Spending per metro-area household is expected total $663, down from $751 last year.
Overall, Twin Cities residents are projected to spend $832 million this year, down 10.9 percent from $939 million in 2007. That projection puts Minneapolis/St. Paul behind national estimates; nationwide, spending is expected to fall by between 1.7 and 6.5 percent.
The annual study was conducted by University of St. Thomas professors Dave Brennan, John Sailors and Lorman Lundsten. Brennan is co-director of the university’s Institute for Retailing Excellence.
Most residents cited gas prices, the slowdown in the housing market and the subprime lending crisis as reasons they will spend less. This year, metro-area families also are projected to buy more gifts online or over the phone than they did a year ago.
Those surveyed said 35.6 percent of their holiday shopping budget will be spent online or over the phone, up from 19.3 percent in the prior year. About 31.5 percent of shoppers’ budgets will be spent at area malls or downtowns, according to the study. Mall of America is expected to see the most traffic, followed by Rosedale, Southdale, and Ridgedale. Maplewood and Eden Prairie tied for fifth place.
The most popular gift in the Twin Cities this year is expected to be books, followed by gift certificates, clothing, cash, toys and hobbies, entertainment and sporting goods. Consumer electronics fell to ninth place, down from seventh place last year.
kgrayson@bizjournals.com | (612) 288-2106
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