NEW YORK (
and K-Mart, are topping this year's list of go-to destinations for holiday shopping, according to a survey released by Citigroup.
And with a whopping 70% of those surveyed citing price as their main motivation for choosing where to shop, it is, of course, no surprise that discounters reign supreme.
In fact, 80% of the survey's respondents said they require at least a 10% discount in order to justify making a purchase.
And not only are discounters wallet-friendly, they are also stocking some of this year's most popular gift-giving items, like children's toys, LCD televisions, GPS Navigators,
iPod touch, digital cameras and gift cards.
Both Wal-Mart and Target have significantly lowered prices on their toy offerings, a category more than half of the respondents plan to purchase. Wal-Mart will be featuring 100 toys for just $10 during the holiday shopping season.
Department stores like
also promise to be popular this holiday season, with 56% of those surveyed saying they will shop these locations.
Shoppers say Macy's is a Must
Department stores could benefit from the slow return of apparel and accessories -- specifically denim, bags and shoes and boots -- which, according to the survey, rank as "hot" holiday items.
In addition, online retailers like
are also poised to pick up market share, with 80% planning on making at least one purchase online.
It will not, however, be a Merry Christmas for all. Drugstores, which are seeing a boost during flu season, apparently won't be as lucky come the holidays. According to the survey, only 22% are planning on shopping at places like
Citi says the category that will be the hardest hit is jewelry, which doesn't bode well for
No matter what type of retailer, however, Citi warns that inventories may too low to meet demand as 70% of shoppers plan to start their shopping before Black Friday. This is a problem retailers would have dreamed of having last year, as they were forced to rely on heavy discounts due to inventory surpluses.
And while lower inventories may result in a weaker top line, it should help boost margins and give retailers more pricing power on must-have items.
-- Reported by Jeanine Poggi in New York
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