Survey: Austin shoppers to spend more this holiday season

Austin consumers plan to spend more money on holiday shopping this year, and millennials will be leading the way.

But younger shoppers will be choosy about where they put their money.

That's according to an annual survey by consulting firm Accenture, which found that 57 percent of Austin shoppers aged 21 to 27 want to "make their money count" by supporting retailers that share their values.

"Our research suggests that the millennial generation has high expectations when it comes to retailers' commitment to inclusion and diversity, and those values are influencing their decision-making in choosing one brand over another," said Jill Standish, senior managing director and head of Accenture's retail practice.

That's good news for Austin's local, independently owned stores this holiday season, said Bryan Sansone, salesforce supervisor at BookPeople.

"We're seeing millennial shoppers go out of their way to support BookPeople in a way I haven't seen in the past five or 10 years," Sansone said. "It seems like it's really turning back towards that drive to support local independent business that we saw in the late '90s."

Overall, nine out of 10 Austin shoppers said they are going to spend as much or more this year than last. The average amount they plan to spend on gifts is $657, compared with the U.S. average of $658. Older Austin millennials (aged 28 to 37) expect to top that, spending an average of $725, according to Accenture's survey.

Accenture's survey of 500 consumers in each of 17 major cities reflects a recent wave of optimistic economic reports. Last week, the National Retail Federation, the nation's largest retail trade group, says it expects sales in November and December to rise between 4.3 percent and 4.8 percent to $717.45 billion to $720.89 billion as shoppers continue to be in a spending mood in a stronger economy.

The sales growth marks a drop from last year's 5.3 percent, which was the largest gain since 2010 when it was 5.2 percent. But the figure is still healthy and is the latest indication that the retail industry is far from an apocalypse that some feared only a year ago.

While stores like Sears Holdings Inc. and J.C. Penney are struggling, others are seeing robust sales helped by their own reinvention efforts and a solid economic backdrop. The unemployment rate is near a 50-year low and the number of job openings is exceeding the number of unemployed. And consumer confidence shot up to an 18-year high in September, according to the Conference Board.

Jeff Green, a retail analyst with Hoffman Strategy Group in Phoenix, said he believes a broad range of small retailers and big chains will have a strong holiday season.

"Consumer confidence is up so much that it will have an affect this year," he said. "I think it's going to be one of the best seasons we've seen. I'm usually really conservative when making these predictions, but not this year."

To compete with Amazon and other sites, brick and mortar stores are working hard to pull consumers back  inside their stores. For many retailers the answer is to offer something that e-commerce can't: a personal experience.

"People are looking for more than shelves of merchandise -- they want experiences," Green said. "Apple was the beginning of this. You go in even when you don't need anything just to test out the new products. That becomes entertainment in itself."

At Austin's Terra Toys, an in-store espresso bar encourages visitors to stay longer and engage with employees, who help shoppers navigate the 18,000-square-foot store and test out products. An art gallery in the espresso bar hosts opening receptions to introduce new work by local artists.

"We want people to have fun and explore while they're here," said Sylvia Edwards, general manager of Terra Toys, located on West Anderson Lane. "Online giants can't compete with us. They try to compete with us by slashing their own prices. But that's the only thing they have is their prices."

Aviator Nation, a Venice Beach, Calif.-based clothing chain, is all about interaction at its new shop on South Congress Avenue. The store features a game room with a pool table, a Ms. Pac-Man video game, a record player and albums, and vintage guitars that can be played by visitors. At the back of the store is a stage where bands will play monthly concerts.

"Millennials really need something above-and-beyond to get their interest and not just stop online," said Paige Mycoskie, founder of Aviator Nation. "They can come in and listen to albums, they can play pool, and also shop at the same time. It's less about shopping and more about having a great experience."

This report includes material from the Associated Press.