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Bloomberg reports on a new study by Connecticut-based Consumer Edge Research suggesting that “the amount of consumers who said they plan to do more holiday shopping at Wal-Mart exceeded the share of those who expected to do less by 22 percentage points.”

In addition, the story says, “Consumers are curbing spending as the unemployment rate hovers near a 26-year high, prompting stores to boost promotions to draw shoppers. Other retailers that may profit from shoppers’ caution include Inc., EBay Inc., and Target Corp. More shoppers plan to avoid stores owned by Costco Wholesale Corp., Toys ’R’ Us Inc., and department stores like Macy’s Inc.”

The Consumer Edge survey also found that 27 percent of shoppers plan to spend less over all this year, compared with 13 percent who said they will spend more.

“While consumers are indicating they will be spending about as much on the holidays this year as they did last year, they are also indicating they will be increasing their holiday shopping at the discount retailers, likely to seek out the best deals possible,” analyst Bill Pecoriello said in the Consumer Edge report.
KC's View:
I’m a little surprised that Costco is not identified as being a discount retailer, since that is one of its core values. That doesn’t seem to compute. But the rest of it seems pretty on target and in line with most of the projections we’re all seeing ... more people will spend a little more money this year, but they’ll spend it a little more carefully and intelligently.