Even though the economy is down, there's one thing that's getting people into stores and opening their wallets: electronics.
A new survey by America's Research Group, which is based in Charleston, found electronics virtually tied with toys as the most popular gift item this year. When asked what gift item they were buying most often, 30 percent said "electronics", while 30.8 percent said "toys". It's the first time in more than 25 years that electronics and toys have tied. Last year, the same survey found 23.7 percent buying electronics most often compared to 33.8 percent buying toys most often.
"Electronics sales, especially flat panel TV sets, are flying out the door this Christmas season," says C. Britt Beemer, CEO and founder of ARG. "When flat panel TV sets hit the magic $499 price point, sales go up like a rocket. Twenty years ago, the same thing happened with VCRs when they hit the $249 price point."
Nakita Williams of Aiken says price is why she bought a flat panel TV Friday. "Since we first started looking, they've come down substantially," she says. "This is the cheapest we've found, so kinda jumping on it."
Terry Amick of Newberry also confirmed the trend, buying a flat panel TV with a built-in DVD player Friday. "That's the definite factor: it's a great price," he says.
Besides flat panel TVs, low prices on laptop computers and Blu-ray DVD players, and the rise of small netbook computers, have consumers making it an electronics holiday.
Matt Little of Sumter was buying a new laptop computer Friday for his daughter. Years ago, a good laptop would cost about $1,000. But now, you can get a netbook for under $300. "The prices have really come down," Little says.
He also thinks the trend toward electronics instead of toys will continue. "I think kids are getting younger and younger as far as their use of electronics are concerned. So, yeah, I think we get more and more (electronics) just because there's more options available," he says.
Because of the increased electronics sales, Beemer is revising his forecast for overall Christmas retail sales. In early November, he had predicted overall retail sales would be down 2.9 percent. But with the strong demand for electronics, he thinks overall sales will be down just 1.2 percent.
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