Shopping Forecast: Not Too Dismal

Even given the gloomy economic climate, a recent survey by The NPD Group, a market research company, found three categories where shoppers were least likely to cut spending: toys, video games and home improvement. Who wants to be the evil parent who cancels Junior's birthday party or provokes their teenager's wrath by saying no to Grand Theft Auto IV? (Like my husband, consumers may justify spending on videogames as a lower cost-per-hour form of entertainment, since those endless nights spent in a gaming haze means money isn't spent on outings to movies, restaurants, etc.)

While the crumbling housing market would seem to drag down spending on home improvement, people who have been unable to sell their homes might now be more willing to invest in repairs and upgrades rather than moving. They may also find that they have to put money into an outdated house in order to sell it in an ever-more-competitive market.

With shoppers feeling cash-strapped and trolling for bargains, this isn't a great time to be in retail. But Americans haven't given up shopping. You just have to give them a good reason to come to you.

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