NEW YORK – Though recent reports suggest retailers are optimistic about holiday sales and expect to see better year-over-year results, shoppers disagree and are planning to be more frugal than they were last year when it comes to holiday spending, according to a survey released today by global business-advisory firm AlixPartners LLP.

The survey of U.S. consumers asked about their spending patterns over the past year and their plans for the upcoming holiday season. Notably, the survey found that consumers plan to spend an average of 8 percent less on holiday products and gifts than they did during last year’s holiday season.

Though overall optimism and holiday shopping plans are up somewhat from a similar AlixPartners survey in 2009, when consumers expected to spend 19 percent less than in 2008, this year?s survey found that this optimism is mostly driven by younger consumers. The ?Baby Boomer? generation (ages 46-64) is significantly less optimistic ? these consumers are planning on spending 14 percent less this holiday season than they did last year. The ongoing economic woes, however, appear to have weighed more heavily on Boomers than on other age groups ? the 2010 survey found that Boomers plan on spending six percentage points less than the total population.

?Despite initial signs of optimism just six months ago, the delayed back-to-school shopping season and our recent survey prove that Americans ? especially Baby Boomers ? are still concerned about the economy and are keeping a tight hold on their wallets,? said David Bassuk, managing director in the Global Retail Practice at AlixPartners. ?While it?s unlikely that the self-reported 8 percent decrease in holiday spending will hold, this consumer sentiment raises concern regarding industry quotes of a 2 percent increase in holiday sales over last year.?

?Boomers were deeply affected by the recession ? their retirement accounts have had erratic performance, many lost their jobs ? and their mindset regarding their personal economic situations hasn?t recovered,? continued Bassuk. ?Younger generations, on the other hand, were not as dramatically affected and seem to be more optimistic and more inclined to opening up their wallets. Look for these shoppers to really be driving holiday sales this year.?

In terms of overall retail spending thus far in 2010, younger consumers (ages 18-24) reported that they?ve been spending more versus last year ? 26 percent of them reported spending more (13 percentage points more than the total population and an increase of four percentage points versus the age group?s estimation in the 2009 survey).

According to the survey, 86 percent of consumers plan on spending ?the same or less? on holiday goods than they did in 2009 ? a slight decrease from last year when 89% of consumers polled said they planned on spending the same or less versus 2008 spending. As they did in 2009, consumers planning on spending less cited concerns over the economy (60 percent) and rising household expenses (47 percent) as the primary reasons. Of note, the number of consumers who cited economic concerns as the primary reason for planning to lower gift spending increased by 15 percentage points compared to the results from the 2009 survey. Tactics to reduce holiday spending include spending less on each person (61 percent) and holding out for deals and promotions (60 percent, up five percentage points from 2009).

?The challenge for retailers will be to create front-of-store displays that speak to the consumer?s state-of-mind and plans to spend less overall,? said Joel Bines, director in the Global Retail Practice at AlixPartners. ?Since consumers plan to be spending less overall and less on each person, they?ll most likely be shopping for one or two ?nice? gifts, as opposed to a larger combination of more- and less-expensive items. As a result, retailers may need to buck tradition by moving the big-ticket items to the front of their stores ? showing shoppers they have the truly special holiday gifts they?re looking for this season.?

The survey also found that more consumers (38 percent) plan on shopping for holiday gifts online (up six percentage points from 2009), which could provide an additional challenge for brick-and-mortar retailers during 2010.

?Increased online shopping and fewer trips to the mall is a problem for retailers since they rely, in part, on window and in-store displays to entice shoppers,? said Keith Jelinek, director in the Global Retail Practice at AlixPartners. ?With the likelihood of less foot traffic this holiday season, retailers need to be even more creative in their efforts to draw in the consumer.

?Additionally, consumers will be using the Web for price comparisons, thereby making competitive pressures and the promotional environment more dramatic than last year,? continued Jelinek.

Though retailers were conservative with holiday inventory purchases this season, when most holiday inventory was purchased six months ago the outlook for the overall economy and for 2010 the holiday season was more optimistic than today?s reality.

?Retailers endeavored to be very strategic with holiday inventory purchases this year, but the economy and consumer confidence hasn?t picked up as much as everyone had anticipated,? said Michael Appel, director in the Global Retail Practice at AlixPartners. ?We expect to see pockets of problems where retailers were too optimistic in their holiday buys.?

Consumers also indicated that they?ll be purchasing more gift cards than they did last year, suggesting that, as with back-to-school, they are going to hold out until the end of the season (late December through January) to take advantage of deals and promotions.

?With cautious consumers clinging to the ?deal? mindset of the past few years, retailers can expect a challenging season,? said Bassuk. ?However, as with back-to-school, the consumer might pull through in the end with increased end-of-season spending. In fact, we expect to see a quick peak in early November, followed by a long, flat selling cycle through the middle of the holiday season and finally a peak in January once the promotions have kicked in and the gift cards are in-hand.?

For more information, click on AlixPartners.Com

a>>