Only seven percent of said their budgets would be bigger than last year while nearly a third said they will have less to spend, according to a survey by Visa.
The survey also found that 45 percent of consumers still have at least one unopened holiday gift from the year before.
And about a quarter admitted they returned at least one gift from last year’s holidays and 22 percent said they re-gifted.
Visa’s findings dovetail with an Accenture PLC holiday shopping report released last month, which found that 88% of holiday shoppers plan to spend the same or less this year. As one bright spot, American Express Co. said holiday travel is expected to remain flat, but those traveling will likely spend more.
The reduced spending could increase competition among retailers. Wal-Mart, for example, unveiled a “Christmas Price Guarantee,” as a way to lure in shoppers. And other retailers, Macy’s and Best Buy among them, are planning to open their Black Friday sales at midnight.
Dow Jones Newswires
