The Business of Christmas

Cleveland, Ohio (November 2007) – Earlier shopping and an increase in how much the average shopper is expected to spend has retailers eyeing a profitable, yet restrained holiday season. The National Retail Federation is projecting holiday sales to top $474 billion, with the average person spending $816.69 this year, and more than 40 percent of all consumers reportedly planned to begin their shopping before Halloween.

With all of that spending, American Greetings lifestyle experts had to work overtime to unearth all of the hottest trends and stats this holiday season. Here is what they found:

Gift card-a-palooza: More than three-fourths of consumers say that they will purchase gift cards to give, and nearly 54 percent say that they would like to receive a gift card, according to the National Retail Federation.

Gifts for everyone: The extreme early bird and very last minute procrastinator are dominating the holiday shopping scene, and retailers are taking notice. For instance, American Greetings will unveil its holiday cards by November 1 this year, with the complete line available before Thanksgiving. The greeting card company has also enhanced its boxed card offering to feature more designer card attachments and finishings.

New this year from the greeting card company are sound, song and light cards. These festive offerings will feature everything from dogs barking “Jingle Bells” and Santa bellowing a hearty “Ho, ho, ho,” to classic holiday tunes such as “It’s beginning to look a lot like Christmas” and “Joy to the world.”

Season’s greetings: According to the Greeting Card Association, Americans will send nearly two billion Christmas cards this year, keeping Christmas securely in first place as the top card sending occasion in the United States.

Crowded post offices: Monday, Dec. 17 is expected to be the busiest mailing day of the year, with more than twice as many cards and letters being processed as on an average day, according to the U.S. Postal Service. USPS employees are bracing themselves to process about 900 million pieces of mail on that day alone – enough to circle the globe six times. In total, consumers will spend over $30 on cards and postage this holiday season, the USPS projects.

Internet research: The speed and convenience of the Internet has made it a key tool for the holidays. Overall more than 88 percent of consumers will regularly or occasionally examine products on the Internet before heading out to the store to purchase.

Deck the computers: While discount stores continue to be the most popular holiday shopping location (68 percent), online shoppers continue to grow. Shop.org estimates that nearly half (47 percent) of consumers plan to shop online this year.

Cyber holidays: Cyber Monday, the Monday after Thanksgiving and Black Friday, is the ceremonial kickoff to the online holiday shopping season. According to a Shopzilla.com survey, more than 61 million consumers will shop online this Cyber Monday, November 26.

Tradition reigns supreme: Even with all of the technology around, the holiday season is still dominated by the age-old traditions and icons we know so well. The traditional colors of red and green and the well-known holiday symbols (like trees, snowmen and Santa) are still part of the top-selling seasonal items this year.

Diverse styles of religious expression: With more than 22 million interfaith households that recognize both Christmas and Hanukah, traditional greetings and celebrations have evolved. Modern expressions of “Happy Holidays” and “Season’s Greetings” are joined by wishes of peace to encompass everyone into this festive time of year.

Decorations in demand: The average consumer is expected to spend $49.76 on holiday decorations this year. That total will include sales of more than 20 million Christmas trees.

The new collection of holiday cards from American Greetings can be found at participating drug chains, grocery stores and super centers nationwide, as well as in American Greetings and Carlton Cards retail stores. Visit www.americangreetings.com/retailers for store locations.

About American Greetings Corporation
American Greetings Corporation (NYSE: AM) is one of the world’s largest manufacturers of social expressions products and greeting cards. Its product lines include gift wrap, party goods, stationery, calendars, ornaments and electronic greetings. Headquartered in Cleveland, Ohio, American Greetings generates annual net sales of approximately $1.7 billion. For more information on the company, visit http://corporate.americangreetings.com.