More Christmas shoppers attracted to the bargain bin
By Tiffany Hsu
Los Angeles Times
Courtney Hamilton's mound of credit-card debt turned her into a first-rate penny pincher this year. But as the holiday gift-giving season approaches, her finances may force her to really switch on her inner Scrooge.
Hamilton, 29, a legal secretary from Los Angeles, has $200 to stretch across six gifts. She used to buy as many as 15 presents each year, spending up to $100 each.
She once gave a friend a $120 computer hard drive; this season, that pal is getting a makeup package Hamilton bought on clearance from www.Avon.com. For her co-workers, Hamilton said she might put together gift baskets of lotions and bath salts from a discount store.
"I have no shame in saying I'm a bargain shopper, especially now," she said. "I'm hard-pressed for some cash, and I'm trying to live beneath my means. Besides, spending a whole lot of money on somebody is not the point."
Frugal gift-shopping is nothing new, but it will likely become the norm this year, recent consumer research indicates:
For many people facing tighter budgets, paring back the number of people they give gifts to is the first plan of attack.
"People have their A lists and then their B lists, but this year you're really going to have to stick to the A list," said Jane Buckingham, editor-in-chief of www.Gifts.com and president of the Intelligence Group, a trend forecasting company. "And sure, there will be some who decide not to give gifts at all."
People on the fringe of a gift giver's social circle, such as teachers or mail carriers, should expect cookies or nothing at all this year. Groups are going in together on gifts so individuals won't have to shell out on their own. At offices, workers are debating whether to hold gift exchanges. Some shoppers trawl sales for gift items or set aside cash each week for presents to avoid overspending with credit cards.
Many gift givers are donating to charity in the recipient's name or slicing their personal spending so they can splurge on presents for their children, she said.
Novelties and gag gifts will sell poorly this year, according to Nielsen's holiday forecast. Meanwhile, DVDs, video games and books are expected to stay strong as people cut back on entertainment and dining-out expenses.
The forecast also predicted that household goods — including toiletries, cookbooks and pet care items — would be big buys. Presents centered on jewelry and apparel will be unpopular unless gift givers focus on basic items such as fleece jackets and casualwear.
As more people stay in, experts say, some are trying to save money by using their newly found free time to make gifts, whether it's stitching quilts or decorating personalized cards.
Jodi Jill, 35, of Los Angeles is searching for 10 percent- to 15 percent-off coupon codes online so she can afford Guitar Hero for her brother.
She lost her job several weeks ago when the auto dealership she worked at declared bankruptcy and closed. Now, she has less than $200 to buy more than 20 gifts.
But buying presents, even on a limited budget, lifts her spirits, Jill said.
"It matters to me to spend time to shop for people I care about," she said. "It's going to be a tight Christmas, but it's still going to be Christmas."
