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Survey: Holiday shoppers in region to splurge

Typical budgets likely to rise 14%, top others around nation by $130

Early holiday decoration shoppers browse the displays at Bronner's Christmas Wonderland store in Frankenmuth, Michigan October 15, 2006. Bronner's, established in 1945, has a 2.1 acre salesroom which is open 361 days out of the year.
Early holiday decoration shoppers browse the displays at Bronner's Christmas Wonderland store in Frankenmuth, Michigan October 15, 2006. Bronner's, established in 1945, has a 2.1 acre salesroom which is open 361 days out of the year. (Reuters/Molly Riley Photo)

New England consumers plan to spend an average of $713 on holiday gifts this year -- 14 percent more than in 2005 and far more than shoppers elsewhere in the country, according to Deloitte & Touche's 21st annual holiday survey of retail spending and trends.

The report, which is being released today , shows New England consumers outspending shoppers in other regions of the country by an average of $130, a gap that has widened over the past two years. New Englanders will also make more of their purchases on the Internet compared to the rest of the nation.

"Younger families and singles are migrating further south because they can't afford to live in New England. That leaves much more mature, wealthier families who can afford to spend more, particularly during the holiday season," said Marshal Cohen , chief retail analyst with NPD Group, a market research firm in Port Washington, N.Y.

Deloitte & Touche interviewed 13,399 consumers nationally, including 655 from New England.

For many merchants, the holiday season is a make-or-break time when they can take in anywhere from 25 to 40 percent of total sales for the year. The National Retail Federation, a Washington, D.C., trade group, is predicting holiday sales nationally will increase 5 percent to $457.4 billion , a more subdued holiday season than last year when sales rose 6.1 percent.

"Consumers have faced a number of economic challenges this year and have taken them in stride," Rosalind Wells , the federation's chief economist, said in a statement. "Although sales gains will not be as robust as last year, retailers can still expect above-average holiday sales growth."

In New England, where consumers have better access to high-speed Internet connections, shoppers say they plan to spend more than one-quarter of their budgets at online retailers, above the national average of 23 percent. The move to the Internet is mainly driven by convenience, as concerns about high gas prices have subsided substantially in New England and across the country, according to the survey.

"Retailers must take heed of the continued shift in behavior to the 'time-pressed consumer,' a shopper who visits fewer stores and is spending less time finding that perfect gift," said Art Schmeiser , a partner with Deloitte & Touche's Northeast Consumer Business practice. "Increased time pressures are driving consumers to seek ways to add more convenience to their shopping experience, which supports the increasing preference for Internet shopping."

Still, about 82 percent of New England area shoppers said they plan to include department stores in their holiday gift shopping destinations, up significantly from 69 percent last year. About 32 percent said they’d spend most of their money in discount department stores and 14 percent said they’d spend the most in traditional department stores.

Also in New England, more consumers are waiting until after Christmas to buy gifts -- 15 percent, compared to 10 percent last year.

Analysts said this phenomenon is most pronounced in New England but is growing across the country as shoppers wait for better deals and use gift cards received during the holidays.

Jenn Abelson can be reached at abelson@globe.com.

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