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NPD: Tech Spending to Remain Cautious This Holiday Season

 & Leslie Horn Reporter

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Consumers plan to spend cautiously again this holiday season, according to NPD's ninth annual holiday retail outlook.

"Even though the recession is technically over, lingering concerns are keeping consumers in a cautious frame of mind," Marshall Cohen, NPD's chief industry analyst, said in a statement. "We are seeing what I call 'calculated consumption,' and I believe that is a consumer mindset that will be around after holiday shopping is over."

One-third of consumers plan to spend less this year, the same as 2009. Because of this intended exercise of restraint, tech sales will likely suffer. Only 16 percent of those surveyed said they planned to purchase electronics, down from 24 percent last year. Another 15 percent expressed an interest in buying a gaming system, down from 20 percent in 2009.

"Consumers tend to fall back on their 'old faithful' items, like apparel, especially when there are no 'new' items or 'hot' categories," Cohen said. "So far there are only some updated re-runs of the same old product."

A small number of consumers plan to spend more; just 9 percent said they'd top what they spent last year, while a dominant 61 percent said they plan to spend the same amount. Most consumers report that they plan to do their homework before hitting the stores, with 62 percent reporting that they would research before making a purchase.

"What this means is consumers will be looking to find what to buy, when to buy and where to buy before leaving the house," Cohen said. "This eliminates the rushed decisions and can potentially eliminate some impulse purchasing from the holiday shopping equation."

About Our Expert

Leslie Horn

Leslie Horn

Reporter

Leslie Horn joined the PCMag team as a news reporter in the fall of 2010. She covered a wide range of topics, from digital media to the latest Apple rumor. After graduating with a degree in Magazine Journalism from the University of Missouri, she wrote for Out & About, a travel guide in coastal Maine. One of her favorite reporting experiences was covering the 2008 Olympics from Beijing. She travels every chance she gets; a favorite trip was backpacking along the coast of Brazil. Though she was born and raised in Dallas, Texas, Leslie embraces life as a New Yorker.

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