Young shoppers boosting sales

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This article was published 12/12/2009 (5753 days ago), so information in it may no longer be current.

Battery-powered heated hoodies, BlackBerry data phones and winter fashion accessories — that’s what young people say they want this Christmas.

And they’re planning to bump up their spending — on themselves and others — more than any other age group this year.

According to a new Winnipeg Free Press/Jory Capital poll, it’s young adults aged 18-34 who expect to spend more this Christmas season, while the rest of us are still feeling some of the aftershock of all the economic bad news.

The poll, conducted by Probe Research, surveyed 1,000 people from Nov. 25 to Dec. 5. It showed that 11 per cent of Manitobans plan to spend more than last year — unchanged from 2008 — but 16 per cent of young adults said they’re planning to hit the stores more than they did the year before.

The survey results are considered accurate to within plus or minus 3.1 percentage points, 95 per cent of the time.

Gerald Haasbeek, an owner of Royal Sports and Kings Skate Snow & Surf, said young people tend to shop as if they are recession-proof.

"If they want the new snowboard jacket or the Nixon brand skater watches, then they just get it," he said.

Which is why his two Kings locations can move good numbers of $250 heated hoodies and brand new Adidas World Cup soccer balls for $150.

Kevin McDougald, research manager of Probe Research, said most of that young demographic have never really experienced a recession before and the one we’re in (or are just emerging from) has really only had a mild impact here.

For instance, he noted, unemployment is still lower than it was during the indulgent days of the mid-’80s leading up to the 1987 stock market crash.

"Most young adults have only known good times," he said. "Sometimes I am stunned by younger people shifting from job to job. In the ’90s you were thankful for whatever job you could get."

Retailers aren’t saying it’s free spending all around, but the poll indicates only 29 per cent of Manitobans say they will spend less than last year.

That’s eight percentage points better than the 37 per cent the national TD Canada Trust Holiday Shopping Survey found and almost 20 percentage points stronger than the 47 per cent the inaugural RBC Canadian Consumer Outlook survey found across the country.

Patrick Cooney, president of Jory Capital which sponsored the new poll, said while there may be stronger consumer confidence in Manitoba, consumers would be wise to exercise caution.

"The U.S. economy is still struggling and we are affected by what happens in the U.S. 100 per cent of the time," Cooney said.

But Deborah Green, general manager of Polo Park shopping centre, said evidence continues to show that Manitobans are spending at a greater pace than people elsewhere in the country.

For instance, she said, data for October show sales were up 10 per cent at her mall, a much better performance than her colleagues in Southern Ontario and Alberta experienced.

Barry Olinyk, general manager of Advance Electronics, which owns MTS Advance stores across the city, said sales volumes are not breaking records, but business is brisk.

Thirty-six-month phone and data plans at $39.99 a month which includes a BlackBerry Curve, Pearl or flip phone at no cost, are moving like hot cakes with younger customers.

Independent retailers like Pam Sarlas at Soul Shoes on Lilac Street said there is an endless selection of cosy winter accessories that younger clients love.

The RBC Consumer Outlook found that shoppers in Manitoba and Saskatchewan are expecting to spend about $880 on holiday shopping, decorating and entertaining compared to a national average of $1,218.

martin.cash@freepress.mb.ca

— With files from Teghan Beaudette

 

The Winnipeg Free Press / Jory Capital poll surveyed 1,000 people from Nov. 25 to Dec. 5 about their spending plans this holiday season. Here was the question:

 

"Thinking about the upcoming holiday season, do you expect that your household spending on gifts

and entertainment will be higher or lower than last year?"

 

Dec. ’08 Dec. ’09

Higher 11% 11%

Same 53% 58%

Lower 36% 29%

 

Much lower 25% 20%

Somewhat lower 11% 9%

 

The survey results are considered accurate to within plus or minus 3.1 percentage points, 95 per cent of the time.