PriceGrabber has released additional results of its first winter holiday shopping survey, revealing that 54 percent of consumers plan to spend $500 or more on gifts this season, slightly higher than last year. Conducted from August 31 to September 12, the survey includes responses from 2,235 U.S. online shopping consumers. Click either photo below to view the full-size infographic.
The National Retail Federation (NRF) has released its 2011 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, and the report predicts a slight decrease in the average amount each shopper will spend this holiday season. According to the survey, shoppers say they plan to shell out an average of $704.18 on holiday gifts and seasonal merchandise, down slightly from last year’s $718.98. NRF still forecasts overall holiday retail sales to grow 2.8 percent during November and December to $465.6 billion.
Holiday shoppers also plan to take advantage of sales and discounts to purchase goods for themselves. Nearly six in 10 holiday shoppers (59.9 percent) say they plan to purchase additional non-gifts for themselves and their families during the holiday season. The largest portion of a consumer’s holiday budget will go to family members, with the average person spending $403.26 on kids, parents, and other family members. Additionally, an average of $68.23 will be spent on friends, followed by $21.06 on co-workers, and $23.39 on other gifts. Consumers will also spend on decorations ($46.73), greeting cards ($26.52), candy and food ($96.75), and flowers ($18.23.) Gift cards will be popular with consumers again this year, with 57.7 percent of shoppers saying they’d like to receive a gift card this holiday season.
According to multiple news outlets, including the Financial Times, Mattel is in talks with Apax Partners to buy Hit Entertainment for £500 million. Two anonymous sources told the Financial Times that Mattel is in the final stages of negotiations to purchase the company that Apax bought in 2005 for £489 million. The sale of Hit will not include the group’s stake in children’s channel Sprout, but will include Bob the Builder, Thomas the Tank Engine, Angelina Ballerina, Fireman Sam, and Pingu.
The National Retail Federation (NRF) is expecting this year’s holiday season to be just average. Although last year’s holiday season outperformed most analysts’ expectations, NRF expects 2011 holiday retail sales to increase 2.8 percent to $465.6 billion, close to the 10-year average holiday sales increase of 2.6 percent. Last year, retailers experienced a 5.2 percent increase.
For the first time this year, NRF used its holiday forecasting model to create a projection for seasonal hiring in retail. According to NRF, retailers are expected to hire between 480,000 and 500,000 seasonal workers this holiday season, which is comparable to the 495,000 seasonal employees they hired last year.
Tomy Company, Ltd. and RC2 Corporation have entered into a definitive agreement pursuant to which Tomy will acquire RC2 through an all-cash tender offer and second-step merger valued at approximately $640 million. The transaction was approved by Tomy’s board of directors. RC2’s board of directors has also approved the agreement and recommended that RC2’s stockholders tender their shares to Tomy pursuant to the offer. Tomy, through a U.S. subsidiary, will make an offer to purchase all outstanding shares of RC2 common stock for $27.90 per share. The tender offer price represents a 30.9 percent premium to RC2’s average closing stock price over the three-month period ended March 9, 2011, and a 27.2 percent premium over the closing price of RC2’s common stock on March 9, 2011. The tender offer is scheduled to commence in 10 business days and is expected to close during the second quarter of this year. The tender offer is subject to certain customary conditions, including the tender of a majority of the outstanding shares of RC2’s common stock on a fully diluted basis. The transaction is not conditioned on financing. Following completion of the tender offer, Tomy will acquire the remaining outstanding shares of RC2’s common stock for $27.90 per share through a second-step merger.
Wild Creations was named the 2010 Fastest Growing Company in South Carolina for their whopping 313 percent average growth. The company was founded in 2007 by Rhett Power and Peter Gasca, and carried one core product: the EcoAquarium. Today, Power and Gasca oversee 80 warehouse employees who package over 80 SKUs to more than 2,000 retailers, including Brookstone, Hallmark, and Learning Express.
According to The Post and Courier, eligible companies “had to be operating for more than three years, have more than $3 million in annual revenue, and be headquartered in South Carolina.”
For more information on Wild Creations and its product lines, visit www.wildcreations.com.
Last week, a federal jury awarded British-based Celador International, Ltd. $269.4 million in damages after unanimously finding that Disney subsidiaries ABC Television, Buena Vista Television, and Valleycrest Productions, Ltd., had breached their contract with the company to share profits from the game show Who Wants to Be a Millionaire?
The lawsuit (Celador International, Ltd. v. Walt Disney Co.) was filed in 2004 after The Walt Disney Co. reported that Who Wants to Be a Millionaire?, created by Celador, never made a profit and generated more than $70 million in losses for the company, although the game show took ABC from No. 4 to No. 1 in network rankings. Celador licensed rights to the game show to ABC Television and Buena Vista Television as part of a deal in which Celador would get 50 percent of the profits from the show.
The nine-member jury, after deliberating for two and a half days, found that the defendants breached the implied “covenant of good faith and fair dealing” they owed to Celador.
Despite rumors that Hasbro was holding preliminary talks with private-equity firm Providence Equity Partners, Hasbro stated that it is not having any discussions with any firm regarding the sale of the company. Hasbro did confirm that it had been approached by a private equity firm regarding a transaction. The company said that its board of directors decided not to pursue any deal.