Easter Spending Up 1.8 Percent In 2010

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IBISWorld Forecasts First Holiday Spending Increase Since 2007

Easter Spending Up 1.8 Percent In 2010IBISWorld Forecasts First Holiday Spending Increase Since 2007

LOS ANGELES

– March 25, 2010 – Spring is in the air and it appears consumers are emerging from hibernation and easing their way back into retail spending. With Easter right around the corner, retailers can anticipate a boost in spring spending activity, according to industry research firm IBISWorld. The company forecasts holiday spending will generate $14.02 billion – a 1.8 percent increase from last year and the first holiday spending increase in three years.

Although the unemployment rate is higher than it was this time last year (8.9 percent versus the current 9.7 percent), a mix of apparel retailers have reported signs of life in recent same-store sales results compared to the dismal performance of a year ago.

“Similar to what we saw last year, department stores overall won’t fare so well this year, despite the expected 2.4 percent increase in the clothing category,” said George Van Horn, senior analyst with IBISWorld. “Consumers will continue their frugal behavior and opt to shop at big box retailers and independent stores offering the most competitive prices.”

Food and candy alone will account for almost half of total Easter sales (33.4 percent and 15.7 percent, respectively). Supermarkets and discount retailers offering a one stop shop for traditional Easter goods will therefore reap the bulk of sales during the holiday.

“Throughout the recession, consumers have continued to get in touch with family values during the holidays, forgoing the desire for wants with items that meet specific needs,” said Van Horn. “Since 2006, traditional category expenditures, like Easter food and candy, have increased their share of total sales. While apparel’s share of total spending will increase slightly in 2010, apparel and gift spending have seen their share of total Easter spending decline during the past four-year period.”

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Dollar & Variety Stores in the US:http://www.ibisworld.com/industry/default.aspx?indid=1093

Department Stores in the US:http://www.ibisworld.com/industry/default.aspx?indid=1090

Candy Production in the US:http://www.ibisworld.com/industry/default.aspx?indid=234

About IBISWorld, Inc.

Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every U.S. industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information visitwww.ibisworld.comor call 1-800-330-3772.

News Source : Easter Spending Up 1.8 Percent In 2010