Compete, Inc. Unwraps Results of Consumer Holiday Shopping Survey; Majority of Consumers Plan to Spend Less or Same As Last Holiday Season; Internet Key Component to Helping Consumers Find the Best Deals.

BOSTON -- Compete, Inc. today announced the availability of its latest Spark! research advisory, "Ka-Ching! Will Cash Registers Ring in the All-Important Fourth Quarter for Retailers?" In this special holiday Spark!, Compete reports that 83 percent of consumers plan to spend less or about the same this holiday season, compared with last year. Compete also found that consumers are using the Internet to find the best holiday deals, with slightly more than half (53 percent) of consumers agreeing they will find the best deal on gifts online. The complete advisory can be found online at http://www.compete.com/research/spark.xtp

Consumers this year report they plan to save money on holiday shopping by looking for bargains, buying fewer gifts and making less expensive purchases. These savvy consumers will use multiple channels to control the holiday marketing promotions they receive through a combination of in-store coupons, store sales, search engines and online deals.

With consumers seeking to buy less expensive gifts this holiday season, it could be a very merry season for discount stores. One out of every two consumers surveyed reported they plan to do 50 percent or more of their holiday shopping in a discount store - such as Wal-Mart, Target or Kmart - up from the 30 percent they estimated they did in a discount store last year.

Major retail stores fared a distant third in consumers' plans (11 percent) behind discount stores and the online channel (25 percent). Among the top online retail sites, Walmart.com, Amazon.com, Target.com and Overstock.com were shopping favorites, garnering 42, 39, 34 and 34 percent respectively of consumers' shopping plans.

Select key findings from this edition of Spark! include:

--"Grinch-like" spending

While 68 percent of consumers said they love the holiday season, consumer holiday spending in 2005 may seem "Grinch-like." Forty-one percent of consumers surveyed say they plan to spend less on gifts than last year and 42 percent plan to spend the same. Gifts under $100 are the most popular, particularly among women. Men claim to be the big holiday spenders; they are 30 percent more likely than women to spend between $100 and $999 on a single gift for someone.

--Internet key component in holiday deal browsing

Forty-one percent of consumers use the Internet to research and browse for the best holiday deals, but end up making purchases in a store. Conversely, 48 percent agree that if they find a gift in a store, they will probably use the Internet to check for the lowest price. The bottom line for retailers is that consumers use a combination of offers and promotions to conduct their shopping and search for the lowest possible price before buying.

--A "Blue" Christmas for Democrats?

Republicans were four times more likely than Democrats to respond that the economy is doing well. In all, 60 percent of Republicans say they will spend about the same or more this holiday season.

--Issues that impact a consumer directly hit home

Nearly 50 percent of consumers responded that the price of gasoline and the price they expect to pay to heat their homes this winter will have a strong or very strong impact on their holiday spending. Only current job situations ranked higher in terms of influence.

To capture shoppers, Compete recommends that retailers offer deals and programs, including lowest-price guarantees, integrated marketing promotions, gift certificates and lay-away plans. "Offering a low-price guarantee or a lay-away plan might lure price-conscious shoppers or those concerned about credit card debt this holiday season," said Stephen DiMarco, vice president of marketing for Compete. "Retailers who better understand consumers' shopping behavior and design promotions with consumers in mind will be the winners this holiday season."

To gather data for this special Spark!, Compete invited consumers from its panel of two million to share their holiday spending plans and identify any potential impacts from economic, social and political factors. The analysis additionally tracked consumers' online shopping at leading retail sites including Amazon.com, Walmart.com, Target.com and Sears.com.

Spark! is a research series providing brands with the insight and information they need to better target consumers and enhance overall marketing effectiveness. It reports the latest research, trends and data impacting the financial services, wireless, travel and automotive industries. To receive future issues of Spark!, sign up at http://www.compete.com/contactUs.xtp

About Compete

Compete, Inc. extends online market research to transform the way consumers and brands communicate. By combining permission marketing, predictive analytics and the industry's largest consumer behavior database, Compete helps marketers identify and reach their target consumers. Compete delivers conversant marketing solutions that increase profitability and customer loyalty and result in measurable and effective marketing programs. Compete delivers these solutions to leading brands such as Carlson Hotels Worldwide, DaimlerChrysler, Hyundai Motor America, Teva Neuroscience, Toyota Financial Services and Upromise(R), among others. Compete is headquartered in Boston, Massachusetts, with offices throughout the US. For more information, please visit http://www.compete.com.