In a recession filled with mass layoffs and slashed pay, Americans are planning to cut back on the springtime holiday, according to a report Wednesday from the National Retail Federation.
Consumers will spend an average of $116.59 on Easter candy, gifts, food and decorations - down 14% from last year, the report said.
It's a disappointing prediction, as some recent reports indicated retail declines were beginning to turn around. Last week, the government said total retail sales fell just 0.1% in February, after January's revised increase of 1.8%.
Earlier this month, Wal-Mart (WMT, Fortune 500) - the world's largest retailer - reported a 5.1% surge in its same-store sales in February.
The results gave retailers hope that the stretches of decline were moderating and could even reverse before the end of the year.
But the NRF report paints a different picture, as the data predict spending will be down significantly in all four components. Consumers are expected to spend $37.67 on food, down 8.3% from 2008; $17.30 on gifts, down 19.2%; $7.55 on flowers, down 17.1%; and $16.55 on candy, down 8.7%.
The number of shoppers planning to buy from discount stores number jumped 5.2 percentage points to 64%. Only 11.4% said they would shop online.
Springtime is usually rosy for retailers, thanks to warmer weather and a change in season that spurs shoppers to buy new clothes.
But even though Easter falls on April 12, three weeks later than it did in 2008, shoppers aren't budging, the report said. Shoppers are expected to spend $19.44 on clothing, down from $23.82.
Still, the schedule shift means retailers have more time to attract shoppers with sales on clothing and other Easter merchandise.
"Many Americans view Easter as the official kickoff to spring," said Phil Rist of BIGresearch, which conducted the survey, in the report. "A later holiday could mean people will take advantage of retailers' Easter promotions as a way to spruce up their spring wardrobe."
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