Meridian Releases Results of 2004 Holiday Shopping Behavior Study

Meridian Releases Results of 2004 Holiday Shopping Behavior Study

Study Reveals That Consumers Continue to Value Selection Over Price

TROY, Mich., Jan. 27 /PRNewswire/ -- Meridian (http://www.meridianmap.com/), an advertising agency serving clients in the retail industry and a Seven Worldwide company, releases the results of its 2004 Holiday Shopping Behavior study today.

According to the study's findings, selection continues to strengthen as a motivator of where consumers decide to shop. Of the consumers surveyed, half cited selection as the driving factor as to where they purchase men's and women's apparel. As selection has grown in importance, the relevance of price has declined. Only 25% of respondents named price as the top reason for shifting holiday spending to other locations this year compared to last. Price has only increased in importance for consumer electronics shoppers this year.

"In the five year history of the study, selection has consistently increased as a motivating factor in where consumers spend," said Dan Surdell, President, Meridian. "Mass merchants continue to lose the share of customers' budgets for apparel. Customers just aren't satisfied with the selection of merchandise at these retailers."

For mass merchants, convenience has also been increasing in importance since the study's inception, and is now equal to price, in terms of consumer spending habits.

The study further indicates more positive findings for the department store channel during this holiday season -- affluent consumers report spending more in this channel this year, reversing the pattern established over prior years. Also, price-oriented consumers report spending less at department stores this year -- indicating that the more upscale merchandising and advertising strategies executed by some department store retailers this past year may be having an impact.

Mass retailers and mid-line retailers continue to produce the most effective advertising. These merchant channels are twice as successful as department stores in creating store traffic through advertising.

Mid-line retailers are growing as a primary source for lower income buyers. These stores are also increasing in favor with Hispanic and African American consumers. Price continues to be the reason cited behind this trend.

Retailers see the Hispanic market evolve as a unique and important sector. For the 2004 holiday season, Hispanics spent the highest percentage of their holiday budget on men's and women's apparel. In comparison to other sectors, Hispanics spent the least, compared to any other group, on toys and electronics. Hispanics spent an estimated 46% of their holiday budget on gifts, compared to 75% by Caucasians and 65% by African Americans. The Hispanic consumer group also strongly prefers mid-line stores for apparel and mass merchants for other categories.

About Meridian

Meridian is a strategic marketing communications agency providing advertising, creative, prepress, photography, digital/graphic arts and asset management tools for leaders in the retail, consumer products, magazine and textbook publishing industries. Meridian's retail practice combines hands-on strategic business planning with extensive retail industry and circular development expertise. Meridian is headquartered in Troy, Michigan and has offices in New York and Omaha. Meridian is a company of Seven Worldwide. More information may be found by visiting http://www.meridianmap.com/.


Source: Meridian

CONTACT: Lisa Langsdorf, Trylon Communications, +1-212-725-2295 ext.30,
Lisal@tryloncommunications.com, for Meridian

Web site: http://www.meridianmap.com/


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