The National Retail Federation conducted a Tax Return Survey to determine where refund money will be spent by consumers. Two-thirds of the shoppers surveyed were expecting a refund. 47% of shoppers will put their refund into savings, 39.1% will pay down debt and 25.1% will use their refund for daily expenses.
Among consumers surveyed between the ages of 18 to 24, 54.9% plan to put their refund into savings and 34.4% will pay down debt. “Americans are thinking of the future, and remaining financially secure is a big part of that,” said NRF president and CEO Matthew Shay.
However, a survey conducted by the International Council of Shopping Centers found that 47% of consumers would spend their refunds on goods and services including apparel, electronics and convenience items.
Retailers are vying for tax refund dollars with specials and marketing campaigns. Banana Republic is conducting email marketing that states “the antidote to taxes is a click away” and Amazon is urging customers to “take a break from filing taxes and scoop up new spring footwear”. Other online retailers, such as Foot Locker, Babies R Us, Bon Ton, The Gap and Ann Taylor are offering deals on Tax Day with percentage-off specials.
Sources: Forbes, International Business Times, Huffington Post
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