"Practically" Americans hold the line on holiday shopping; MasterCard '95 holiday shopping poll shows sluggish spending levels.

PURCHASE, N.Y.--(BUSINESS WIRE)--Nov. 27, 1995--In keeping with prevailing consumer retailing trends, America's shoppers will spend less on holiday gifts this season, according to the results from the Annual MasterCard Smart Shopper Holiday Poll.

The poll of 1,000 consumers nationwide conducted by Bruskin-Goldring revealed that Americans plan to spend $444 on holiday gifts, down $42 from 1994.

While nearly half (48%) of America's shoppers said they will spend "about the same" as last year on holiday gifts, which is on par from year ago levels, 30% of consumers said they will spend less, which is up six percentage points from the 1994 poll.

Practicality on the Rise

This year, the MasterCard Smart Shopper Holiday Poll reveals shoppers are airing on the side of practicality, with 65% of consumers describing their styles and attitudes toward holiday shopping as smart or practical, up from 57% last year. The good news is only 12% of shoppers polled viewed themselves as penny-pinching, although nearly half (49%) of the shoppers say they are more interested in finding those special discounts and store promotions. Not surprising, the majority of consumers (60%) still find a one-stop shopping approach more desirable.

Practical or not, more than half (54%) said they want to get their shopping over quickly - within a day or two. Men are more likely to describe themselves as last minute shoppers (53%). By contrast, women are more likely to describe themselves as early bird shoppers (53%).

Finding The Right Gift

In keeping with the trend towards practicality, this year shoppers are more concerned than ever with buying the "right" gifts, with 68% saying it's their biggest concern.

Topping the gift "wish list" for the fourth straight year is clothing (63%). But records/cassettes and CDs inched up to second place (42%), books and a trip or vacation tied for third place (40%). Rounding out this year's wish list are fine jewelry (34%); home electronics (33%); home furnishing (28%); videos (26%); kitchen items (26%).

The Convenience of Credit

When it comes to paying for holiday gifts, half (51%) of consumers said they usually use cash, down from 59% from 1994; 22% of those surveyed said they usually use a major credit card -- up from 15% last year; and 21% said they usually pay by check.

"More and more consumers are realizing that paying with MasterCard is the most convenient and safest way to pay," said Fred Gore, senior vice president, U.S. Region Acceptance, MasterCard International. "The popularity of rebate card programs and influx of new retailers like warehouse clubs and discount stores accepting cards have made plastic forms of payment an even more attractive option to using cash or checks. This trend is consistent with industry reports that have tracked consumer payment preferences for the past five years," Gore said.

MasterCard International Incorporated is a global payments company that provides consumer credit, debit and other payment products in partnership with 22,000 member financial institutions worldwide. MasterCard's family of brands, MasterCard(R), Maestro(R) and Cirrus(R), represent approximately 300 million cards in circulation, and over 13 million acceptance locations, including 243,000 MasterCard/Cirrus ATMs worldwide. MasterCard's pioneering work in the areas of transaction processing and delivery systems continues to revolutionize the way consumers pay for goods and services. MasterCard can be reached through "Pointers," its Worldwide Web site, at http://www.mastercard.com. -0-

1995 MasterCard Smart Shopper Holiday Poll

Topline Results of 1,000 Consumers

Average 1995 Holiday Spending $444 (down $42 from '94)

Anticipated 1995 Spending vs. 1994 48% About the Same

30% Less

21% More

Usual Form of Payment for Holiday Gifts 51% Cash

22% Major Credit Card

21% Check

Where Most Will Purchase Holiday Gifts 50% Malls/Shopping Centers

21% Department Stores

13% Discount Stores/Outlets

6% Mail Order

4% Specialty Stores

Top Ten Gift "Wish List"

1994 vs. 1995

1. Clothing Clothing 2. Trip/Vacation Records/CDs/Cassettes 3. Records/CDs/Cassettes Books & Trip/Vacation (tie) 4. Books Fine Jewelry 5. Home Electronics Home Electronics 6. Fine Jewelry Home Furnishings 7. Home Furnishings Kitchen Items and Videos (tie) 8. Videos Toys and Games 9. Kitchen Items Fruitcake 10. Toys and Games

CONTACT: MasterCard International

Michael O'Brien, 914/249-1373

or

Alan Taylor Communications

Erin Davy, 212/714-1280