Shoppers at opposite ends of the economic spectrum will approach the holiday season very differently, producing a mixed outlook for retailers.
Doug Harrison, President and CEO, Harrison Group

Low and middle-income households with annual income less than $75,000 will spend 7.6% less on gifts this year according to a recent Harrison Group poll of over 1,000 consumers. Fuel prices, home heating costs and the increasing food expenses are contributing to the spending decline.

Affluent households, however, are poised to make up the difference. Holiday spending among households with over $75,000 in income is projected to rise by 3.1%, to almost $82 billion. This top 30% of households will spend nearly as much on gifts as the remaining 70%.

A new study by Harrison Group projects that $169.1 billion will be spent on gifts - 2.5% less than last year.

"Shoppers at opposite ends of the economic spectrum will approach the holiday season very differently, producing a mixed outlook for retailers," said Doug Harrison, President and CEO of Harrison Group.

"Consumers at the high end of the market appear to be unaffected by economic uncertainty and will spend with gusto," added Dr. Taylor.