(RTTNews) - U.S. shoppers are planning on spending 3.2 percent less during the holidays this year than they did last year, according to a report released Tuesday by the National Retail Federation.

The NRF reported that U.S. consumers plan to spend an average of $682.74 on their holiday shopping. Last year, they spent an average of $705.01.

Two-thirds of those surveyed said that the economy would affect their holiday shopping, and 84.2 percent of those who said the economy would affect their shopping said they were planning on spending less money during the holiday season.

The majority of consumers said that three-fourths of their holiday budgets will still be spent on gifts, but they also said that they would spend $13.36 less on friends and $3.37 less on co-workers.

Fifty-five percent of respondents said they would be shopping for sales more often during the holiday season, while 41.7 percent said they would use more coupons. Thirty-four percent said they would save on money on decorations by putting up the same ones they did last year.

"While last holiday season was filled with chaotic confusion, adjusting to uncertainty has now become routine for many Americans," Tracy Mullin, NRF President and CEO, said in the report. "This holiday season will be a bit of a dance between retailers and shoppers, with each group feeling the other out to understand how things have changed and how they must adapt."
Fewer consumers will be traveling for the holidays, too; 28.6 percent of those surveyed said that the economy will be forcing them to travel less or not at all.

Consumers also said that stores putting on sales and giving price discounts or offering everyday low prices will be the most appealing places to shop during the coming holiday season, while other factors, such as selection, quality and customer service will not hold much sway.

The NRF reported that 70.1 percent of consumers will shop at discount stores, while 55.8 percent will do their holiday shopping at department stores. Grocery stores, the Internet and electronic stores will also be popular among consumers.

It was also reported that retailers will be cutting back on inventory during the coming holiday season.

"In anticipation of weak demand, many retailers scaled back on inventory levels to prevent unplanned markdowns at the end of the season," Mullin said. "Once the most popular items are gone, retailers won't have anywhere to get them, so if there was ever a holiday season to buy early, this is it."

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