/PRNewswire/ -- Georgia consumers are not optimistic about the state's economic condition, with just 12 percent of respondents to the latest poll from Georgia Credit Union Affiliates (GCUA) saying they believe the economy has improved in the past year. The rest characterized Georgia's economic situation as either about the same or getting worse than last year, sentiments which could have a material impact on consumer saving and spending throughout the state.
The quarterly Georgia Credit Unions' "Paying Attention" report indicates that, while consumers are working to build a buffer of savings by cutting back on expenses and delaying large purchases, they are still unprepared to deal with any further financial setbacks. The report compiled recent poll responses from more than 4,000 credit union members and aggregated data from credit unions statewide.
"As national statistics start to show an increase in consumer confidence, Georgia credit union members are still wary about their own personal financial health," said Mike Mercer, president and CEO of GCUA. "If the economy strengthens, consumers could become more optimistic. But, in the meantime, we expect to see cautious plans for spending and especially borrowing. In fact, loan demand at Georgia credit unions has been very soft."
Consumer Poll
The full report, available at www.georgiacreditunions.org, includes poll results measuring Georgia consumers' current economic mood, as well as savings and spending trends. Among the report's findings:
* Only 12 percent of poll respondents believe the economy is improving compared to a year ago, with 40 percent saying they think it's getting worse.
* More than 30 percent (32.9 percent) of respondents said they experienced changes in their employment situation during the recession, ranging from layoffs to pay cuts to having to take a second job.
* More than one-third of respondents (35.7 percent) said they had no reserve savings to cover essential expenses if they were to lose their job or other source of income. On the other hand, 18.9 percent said they had enough savings to cover more than one year without a source of income.
* Almost two-thirds of respondents (65.6 percent) said they have changed their personal savings habits over the past six months, including spending less or cutting expenses like eating out and taking trips.
* Compared to 2010, respondents appear even more wary about making large purchases. 63.3 percent said they do not plan to purchase any big-ticket items in 2011, compared to 52.1 percent who said they avoided large purchases last year.
* Half (50 percent) of respondents say they will pay for their large purchases with cash from savings.
Credit Union Data Show Continued Trend Toward Savings
In conjunction with the consumer poll, GCUA compiled savings and lending data from 39 credit unions from across the state that represents 91 percent of credit union assets and 83 percent of members in Georgia. The findings, outlined in the chart below, reflect a continuing trend toward savings, while figures for lending varied:
* Savings deposits rose at an annualized rate of 5.42 percent during 2010, just slightly less than the 6.24 percent rise in 2009. Checking account balances also grew by 13.12 percent in 2010.
* New vehicle loans continue to decline, with more consumers opting for used car loans: new vehicle loan balances fell by 10.42 percent in 2010, while used car loan balances increased by 7.16 percent, continuing a trend from 2009.
* First mortgage balances increased by 9.89 percent in 2010.
* The number of bankruptcy filings among members rose 12.47 percent in 2010 compared to 2009.
More information is available at www.georgiacreditunions.org or on facebook.com/creditYOUnion.
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Showing posts with label spending. Show all posts
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Thursday, February 24, 2011
Thursday, December 17, 2009
Consumer Reports Poll: 40 Percent of Adults Have Yet to Begin Holiday Shopping
/PRNewswire/ -- Many Americans have put off shopping for holiday gifts. As of December 6th, 40 percent of adults said that they have yet to hit the stores for gifts, according to Consumer Reports' latest Holiday Shopping Poll.
They also told Consumer Reports that, on average, they will be spending $699 on holiday gifts. The full poll results are available on www.ConsumerReports.org.
Over the past three holiday shopping seasons, the average amount shoppers plan to spend on gifts has declined steadily. In 2008, shoppers anticipated spending $740, on average, down from $763 in 2007. While planned spending has decreased by $64, the number of gifts shoppers plan to buy has not changed. On average, shoppers plan to buy 15 gifts, which is about the same number as in previous years.
The next few weeks may be frantic for many shoppers, as only 12 percent have finished their holiday shopping and nearly one-third (30%) do not anticipate finishing until December 23 or later. Just over one-in-ten (13%) shoppers will not finish until December 24. And finding that perfect gift may be problematic for procrastinators, as a third (34%) of consumers who have started gift shopping have found an item they wanted was out-of-stock.
"The findings clearly show that Americans are taking a pragmatic approach to the holidays. And that's a good thing," said Tod Marks, senior editor and shopping expert for Consumer Reports. "Consumers are spending a bit less, focusing on more practical gifts, and vowing to take on less debt and pay it off sooner."
Consumer Reports' survey also found that 68 percent of credit card users plan to pay off their holiday debt by the end of January. These intentions seem ambitious, but in recent years adults have become more diligent in paying off their holiday debt.
Best Holiday Bargains
-- Survey respondents told Consumer Reports that they were finding the
best deals at mass merchandisers (41%) such as Walmart and Target, and
online retailers (39%).These were followed by department stores (21%),
discount stores (16%) such as TJ Maxx and Marshalls, outlet stores and
malls (12%), and warehouse clubs (11%).
Methods of Payment
-- About three-quarters (76%) of shoppers use cash to pay for their
holiday purchases, leading both debit cards (51%) and credit cards
(48%) by a wide margin. Men (41%) are more likely than women (29%) to
use cash most often.
-- Since 2007, the amount that consumers charge on credit cards to pay
for holiday purchases has steadily decreased. Shoppers who plan to
use their credit cards told Consumer Reports that they intend to put
less on them this year, charging $636 on average versus $682 in 2008
and $723 in 2007.
Credit Card Debt
-- Credit card users paid off their credit card debt faster last holiday
season than the preceding year. By the end of January 2009, 61
percent had paid off their credit card debt incurred during the 2008
holiday season, compared to 53 percent in 2007. However, just over
one-quarter (27%) did not pay off their 2008 holiday debt until March
2009 or later.
Give, Receive & Re-Gift
-- On average, consumers plan on buying about 15 gifts. Women plan on
buying more gifts than men, 16 compared to 13. And those getting
gifts this season may actually find them useful, as 34 percent of
adults told Consumer Reports that they are more likely to buy
practical gifts this year. This is good news for the 30 percent of
adults who said they wanted to receive more practical gifts. Although
practical gifts are not guaranteed to be good, especially if they come
from an extended family member, who 15 percent reported give the worst
gifts. Parents (6%) and in-laws (7%) are less likely to give the
worst gift. Seen that gift before? Look closely, as 15 percent of
gift shoppers reported that they will practice re-gifting this year.
Online Shopping
-- The percentage of shoppers who plan to buy gifts online continues to
increase. This year, 39 percent of shoppers plan to purchase gifts
online between early December and the holidays, up from 31 percent in
2006. And when it comes to online shopping, men (44%) are more likely
than women (34%) to do so.
Post-Holiday Shopping
-- According to the Consumer Reports' poll, nearly half (46%) of adults
plan to shop in-stores between Christmas and New Years, with most
being drawn into the stores to take advantage of post-holiday sales
(81%) and 69 percent planning to shop for themselves.
Wishing the Holidays Away
-- Bah humbug! As of December 6th, about one in five (21%) adults said
they wished the holidays were over.
-----
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They also told Consumer Reports that, on average, they will be spending $699 on holiday gifts. The full poll results are available on www.ConsumerReports.org.
Over the past three holiday shopping seasons, the average amount shoppers plan to spend on gifts has declined steadily. In 2008, shoppers anticipated spending $740, on average, down from $763 in 2007. While planned spending has decreased by $64, the number of gifts shoppers plan to buy has not changed. On average, shoppers plan to buy 15 gifts, which is about the same number as in previous years.
The next few weeks may be frantic for many shoppers, as only 12 percent have finished their holiday shopping and nearly one-third (30%) do not anticipate finishing until December 23 or later. Just over one-in-ten (13%) shoppers will not finish until December 24. And finding that perfect gift may be problematic for procrastinators, as a third (34%) of consumers who have started gift shopping have found an item they wanted was out-of-stock.
"The findings clearly show that Americans are taking a pragmatic approach to the holidays. And that's a good thing," said Tod Marks, senior editor and shopping expert for Consumer Reports. "Consumers are spending a bit less, focusing on more practical gifts, and vowing to take on less debt and pay it off sooner."
Consumer Reports' survey also found that 68 percent of credit card users plan to pay off their holiday debt by the end of January. These intentions seem ambitious, but in recent years adults have become more diligent in paying off their holiday debt.
Best Holiday Bargains
-- Survey respondents told Consumer Reports that they were finding the
best deals at mass merchandisers (41%) such as Walmart and Target, and
online retailers (39%).These were followed by department stores (21%),
discount stores (16%) such as TJ Maxx and Marshalls, outlet stores and
malls (12%), and warehouse clubs (11%).
Methods of Payment
-- About three-quarters (76%) of shoppers use cash to pay for their
holiday purchases, leading both debit cards (51%) and credit cards
(48%) by a wide margin. Men (41%) are more likely than women (29%) to
use cash most often.
-- Since 2007, the amount that consumers charge on credit cards to pay
for holiday purchases has steadily decreased. Shoppers who plan to
use their credit cards told Consumer Reports that they intend to put
less on them this year, charging $636 on average versus $682 in 2008
and $723 in 2007.
Credit Card Debt
-- Credit card users paid off their credit card debt faster last holiday
season than the preceding year. By the end of January 2009, 61
percent had paid off their credit card debt incurred during the 2008
holiday season, compared to 53 percent in 2007. However, just over
one-quarter (27%) did not pay off their 2008 holiday debt until March
2009 or later.
Give, Receive & Re-Gift
-- On average, consumers plan on buying about 15 gifts. Women plan on
buying more gifts than men, 16 compared to 13. And those getting
gifts this season may actually find them useful, as 34 percent of
adults told Consumer Reports that they are more likely to buy
practical gifts this year. This is good news for the 30 percent of
adults who said they wanted to receive more practical gifts. Although
practical gifts are not guaranteed to be good, especially if they come
from an extended family member, who 15 percent reported give the worst
gifts. Parents (6%) and in-laws (7%) are less likely to give the
worst gift. Seen that gift before? Look closely, as 15 percent of
gift shoppers reported that they will practice re-gifting this year.
Online Shopping
-- The percentage of shoppers who plan to buy gifts online continues to
increase. This year, 39 percent of shoppers plan to purchase gifts
online between early December and the holidays, up from 31 percent in
2006. And when it comes to online shopping, men (44%) are more likely
than women (34%) to do so.
Post-Holiday Shopping
-- According to the Consumer Reports' poll, nearly half (46%) of adults
plan to shop in-stores between Christmas and New Years, with most
being drawn into the stores to take advantage of post-holiday sales
(81%) and 69 percent planning to shop for themselves.
Wishing the Holidays Away
-- Bah humbug! As of December 6th, about one in five (21%) adults said
they wished the holidays were over.
-----
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Georgia Front Page
Tuesday, November 17, 2009
Poll: Georgians Cautious with Spending This Holiday Season
/PRNewswire/ -- Georgians are planning to spend money carefully this holiday season, and overwhelmingly, they don't want to rack up enormous credit card bills in the process, according to a new poll from Georgia Credit Union Affiliates (GCUA).
The Georgia Credit Unions' Holiday Spending Poll of 1,000 credit union members from across the state revealed that 52 percent plan to spend less than they did last year, while 45 percent plan to spend the same as last year and only 3 percent plan to spend more. Concurrently, 76 percent of Georgians polled plan to pay for all or most of their purchases with cash, and only 12 percent are planning to use a credit card to make their purchases, the poll showed.
These results mirror the findings from another recent GCUA poll that found 46 percent of Georgians are spending less overall now compared to one year ago, with an additional 41 percent spending the same as they did a year ago. Only 13 percent are spending more overall now than at this time last year.
"Clearly, Georgians are concerned about their financial well-being, so they are looking to spend money more vigilantly now than in previous years," said Mike Mercer, president and CEO of GCUA. "It's one thing to spend money, but it's another to spend money wisely. While Georgians will still spend money to enjoy the holiday season, they're not going to take on more debt to do it; instead, they are looking at their finances with an eye toward the future."
Of those polled, 59 percent plan to spend less than $500 on gifts this holiday season, while 31 percent plan to spend between $500 and $1,000. Meanwhile, a small pocket - 10 percent - plan to spend more than $1,000. Additional details and charts of the poll results are available at www.georgiacreditunions.org.
Credit unions throughout Georgia this year are marking the 100th anniversary of cooperative financial institutions in the U.S., and the 75th anniversary of the Georgia Credit Union League. Last month, credit unions in Georgia celebrated "A Century of Good Advice," which included the release of a poll on the savings and spending habits of Georgia consumers and the debut of a short online video.
The poll results and video are available at www.georgiacreditunions.org.
-----
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Georgia Front Page
The Georgia Credit Unions' Holiday Spending Poll of 1,000 credit union members from across the state revealed that 52 percent plan to spend less than they did last year, while 45 percent plan to spend the same as last year and only 3 percent plan to spend more. Concurrently, 76 percent of Georgians polled plan to pay for all or most of their purchases with cash, and only 12 percent are planning to use a credit card to make their purchases, the poll showed.
These results mirror the findings from another recent GCUA poll that found 46 percent of Georgians are spending less overall now compared to one year ago, with an additional 41 percent spending the same as they did a year ago. Only 13 percent are spending more overall now than at this time last year.
"Clearly, Georgians are concerned about their financial well-being, so they are looking to spend money more vigilantly now than in previous years," said Mike Mercer, president and CEO of GCUA. "It's one thing to spend money, but it's another to spend money wisely. While Georgians will still spend money to enjoy the holiday season, they're not going to take on more debt to do it; instead, they are looking at their finances with an eye toward the future."
Of those polled, 59 percent plan to spend less than $500 on gifts this holiday season, while 31 percent plan to spend between $500 and $1,000. Meanwhile, a small pocket - 10 percent - plan to spend more than $1,000. Additional details and charts of the poll results are available at www.georgiacreditunions.org.
Credit unions throughout Georgia this year are marking the 100th anniversary of cooperative financial institutions in the U.S., and the 75th anniversary of the Georgia Credit Union League. Last month, credit unions in Georgia celebrated "A Century of Good Advice," which included the release of a poll on the savings and spending habits of Georgia consumers and the debut of a short online video.
The poll results and video are available at www.georgiacreditunions.org.
-----
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www.georgiafrontpage.com
Georgia Front Page
Thursday, October 29, 2009
Wal-Mart Price War Sets Grim Tone For The 2009 Holiday Season
/PRNewswire/ -- American retail chains panicked last holiday season as they stared at overstocked shelves and wondered, "How will we sell all this stuff?" Their response to the collapse of the economy--namely, to markdown everything in sight and cross their fingers--was a last-minute act of desperation. Because they spent the past year ruminating about worst-case scenarios, however, many retailers now face a new problem as the holidays actually approach, says Stevan Buxbaum, executive vice president of Agoura Hills, Calif.-based Buxbaum Group, the consulting and turnaround investment firm.
"Retailers were so nervous they over-constricted their inventories," explains Buxbaum, who looks for comparable store sales to be in the flat to negative 1% range for the season. "They are now scrambling to stock up. The problem is that we have a worldwide supply chain. Much of the inventory comes from Asia and can sit on a boat for up to six weeks before it gets here. Beefing up inventories in time for the holiday season will be virtually impossible."
And that means parents hunting for hot-sellers like Disney's Netpal laptop or the Zhu Zhu Pets Hamsters might have a tough time fulfilling their kids' holiday wishes. "The best inventory--all the stuff that turns out to be the most desirable this year--will be gone by December 7," Buxbaum predicts. "From then until Christmas, shoppers will be picking through all the remaining merchandise."
Amid dismal holiday sales forecasts, meanwhile, Wal-Mart has embarked on a price war in which it plans to slap discounts on new groups of products every week until the season is over. The world's largest retailer is now selling 100 different toys for $10 each, and will make especially aggressive markdowns on books, DVDs, video games and other entertainment products. "The online price-war in best-selling books between Wal-Mart, Amazon and now, Target, speaks volumes about the cutthroat nature of retail in 2009," Buxbaum says. "Wal-Mart has fired the first shot across the bow and it is only October.
"In general," he continues, "consumers are still focused on price and value. The winners will be those chains that have the guts to slash prices the most. Eking out a profit in this environment requires highly rationalized SG&A (selling, general and administrative) costs and lower overhead. Wal-Mart is No. 1 in that regard, followed by the warehouse clubs and Target. Everybody else is in the rearview mirror."
The top 1% of richest Americans might unwrap a MacBook Pro or find a Lexis SUV parked in the driveway. But the vast majority of shoppers will not be maxing out any credit cards this year at the likes of Nieman Marcus, Buxbaum says. "We have gone from the 'aspirational' shopper--people who spent beyond their means for the sake of status or the sheer thrill--to the 'desperational' shopper," he observes. "Now, most people are just trying to find value."
That said, certain trends hint at the types of products that will go over best with budget-constrained and newly circumspect shoppers, Buxbaum says. Rave reviews of the new Windows 7 operating system, which Microsoft radically simplified after consumers railed against its feature-packed Vista predecessor, show the rising importance of simplicity and practicality in consumers' harried lives.
"Wired magazine talks about the rise of 'Good Enough' tech," he says. "Take digital cameras. People don't want another $1,000 camera. They're saying, 'Heck. I never figure out what 90% of these features do anyway, and I'm not Ansel Adams.' Personally, I use about 1% of the features on my Blackberry. People's lives are so complex, they want to simplify them. They don't want all this stuff that they neither need nor understand."
Even though devices like Apple's all-in-one iPhone or Amazon.com's Kindle e-book reader are expensive, they continue to sell because they help people reduce clutter and bulk. "If you simplify my life by putting four different devices, or thousands of books, into one device, that's convergence," Buxbaum says. "People are interested in convergence, not complexity."
Nor are American parents interested in short-changing their kids. They will continue to spend as much as they can on children and younger adults, and retailers focused on these segments will see stronger sales, especially if they have somehow managed to find a niche that enables them to avoid direct competition with Wal-Mart, Buxbaum notes. "People won't take out their frustration with the financial system and Wall Street on their nieces and nephews," he says. "But they will cut back on spending for themselves."
Sustainable or "green" products might have bright longer-term futures, but they won't set any records this year with the broad base of the American economy. "The extra cost of green doesn't fit the proposition of getting the best price," Buxbaum says. "The overwhelming thing right now is not whether something will disintegrate in a landfill--our economy is disintegrating in a landfill. You could call it the biodegradable economy. It will take a resurgence of that broad base for us to rebuild a new economy that doesn't break down."
-----
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Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
"Retailers were so nervous they over-constricted their inventories," explains Buxbaum, who looks for comparable store sales to be in the flat to negative 1% range for the season. "They are now scrambling to stock up. The problem is that we have a worldwide supply chain. Much of the inventory comes from Asia and can sit on a boat for up to six weeks before it gets here. Beefing up inventories in time for the holiday season will be virtually impossible."
And that means parents hunting for hot-sellers like Disney's Netpal laptop or the Zhu Zhu Pets Hamsters might have a tough time fulfilling their kids' holiday wishes. "The best inventory--all the stuff that turns out to be the most desirable this year--will be gone by December 7," Buxbaum predicts. "From then until Christmas, shoppers will be picking through all the remaining merchandise."
Amid dismal holiday sales forecasts, meanwhile, Wal-Mart has embarked on a price war in which it plans to slap discounts on new groups of products every week until the season is over. The world's largest retailer is now selling 100 different toys for $10 each, and will make especially aggressive markdowns on books, DVDs, video games and other entertainment products. "The online price-war in best-selling books between Wal-Mart, Amazon and now, Target, speaks volumes about the cutthroat nature of retail in 2009," Buxbaum says. "Wal-Mart has fired the first shot across the bow and it is only October.
"In general," he continues, "consumers are still focused on price and value. The winners will be those chains that have the guts to slash prices the most. Eking out a profit in this environment requires highly rationalized SG&A (selling, general and administrative) costs and lower overhead. Wal-Mart is No. 1 in that regard, followed by the warehouse clubs and Target. Everybody else is in the rearview mirror."
The top 1% of richest Americans might unwrap a MacBook Pro or find a Lexis SUV parked in the driveway. But the vast majority of shoppers will not be maxing out any credit cards this year at the likes of Nieman Marcus, Buxbaum says. "We have gone from the 'aspirational' shopper--people who spent beyond their means for the sake of status or the sheer thrill--to the 'desperational' shopper," he observes. "Now, most people are just trying to find value."
That said, certain trends hint at the types of products that will go over best with budget-constrained and newly circumspect shoppers, Buxbaum says. Rave reviews of the new Windows 7 operating system, which Microsoft radically simplified after consumers railed against its feature-packed Vista predecessor, show the rising importance of simplicity and practicality in consumers' harried lives.
"Wired magazine talks about the rise of 'Good Enough' tech," he says. "Take digital cameras. People don't want another $1,000 camera. They're saying, 'Heck. I never figure out what 90% of these features do anyway, and I'm not Ansel Adams.' Personally, I use about 1% of the features on my Blackberry. People's lives are so complex, they want to simplify them. They don't want all this stuff that they neither need nor understand."
Even though devices like Apple's all-in-one iPhone or Amazon.com's Kindle e-book reader are expensive, they continue to sell because they help people reduce clutter and bulk. "If you simplify my life by putting four different devices, or thousands of books, into one device, that's convergence," Buxbaum says. "People are interested in convergence, not complexity."
Nor are American parents interested in short-changing their kids. They will continue to spend as much as they can on children and younger adults, and retailers focused on these segments will see stronger sales, especially if they have somehow managed to find a niche that enables them to avoid direct competition with Wal-Mart, Buxbaum notes. "People won't take out their frustration with the financial system and Wall Street on their nieces and nephews," he says. "But they will cut back on spending for themselves."
Sustainable or "green" products might have bright longer-term futures, but they won't set any records this year with the broad base of the American economy. "The extra cost of green doesn't fit the proposition of getting the best price," Buxbaum says. "The overwhelming thing right now is not whether something will disintegrate in a landfill--our economy is disintegrating in a landfill. You could call it the biodegradable economy. It will take a resurgence of that broad base for us to rebuild a new economy that doesn't break down."
-----
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