Holiday season is over and shoppers did cut back on shopping but only for a while. After enjoying the taste of spending, shoppers seem to be in no mood to cut back on spending, and they are more than willing to spend on much more than just socks and T-shirts, in this year.
In a survey conducted by MasterCard Worldwide in mid-December, it was found that 61% of shoppers did not have any plans on cutting back on spending this year, in spite of the dues from their holiday spends.
During the recession most households had just indulged in shopping for just the basic necessities such as some bare essentials and groceries. After having tightened purse strings, Americans now feel the urge to splurge and things are fast changing.
Melody Miller, Senior vice president of Global Commerce, was quoted as saying that this consumer spending during the holidays, had lifted their spirits as people were not essentially shopping only for the essential commodities, but were also indulging in shopping for fun things.
There was also an indication that consumers were comfortable shopping for more expensive products, and there was clear evidence of that there was a surge in shopping sprees even in high end stores, such as Nordstrom.
As per the MasterCard survey, 59% of the customers who had incomes ranging from $35,000 to $50,000 had no plans to cut back on their spending in 2011, and 57% of consumers who had an income of $50,000 to $75,000 also felt the same way. The more affluent spenders with incomes of $100,000 and $150,000 (73% of them) also stated that they did not mind making some fickle purchases during this year.
Despite the increase in spending patterns customers are still cautious and said that they would be looking out for sales offer this year too. These results are obtained from an interactive survey conducted by MasterCard that surveyed 1,019 shoppers in the 18 and above age group.
This year the use of credit cards is likely to be a little different, stated Theodore Lacobuzio, Vice president of Global Insights.
Prior to the crisis, credit cards were used as tools to fulfill a wish, although the spending on these cards did not make any sense from the point of household spending. But when there was a slump in the economy, issuers cut back on offers and consumers then opted for debit cards or cash payment options.