Study: Gifts represent good chunk of retail market

Gift purchases made up 10 percent of the U.S. retail market in 2005, according to a new study by Unity Marketing.

The Giting Report 2006 study finds entertainment and recreational goods among the most popular gifts last year, with consumers shelling out about $52.6 billion for books, DVDs, CDs, toys and electronics.

Gift certificates ranked as the second most popular gift purchase, with certificates for discount department stores serving as the top source.The typical gift-giver spent $1,935 on gifts in 2005, with about 60 percent of that ($1,190) going to gifts for holidays.

Consumers spent the remaining 40 percent of their gift funds on non-holiday gifting occasions such as birthdays, weddings and anniversaries.Birthdays and Christmas represent the biggest gifting instances, with almost all gift-buyers purchasing Christmas gifts, and 82 percent of gift-givers buying birthday presents.

"Buying a gift is an important reason why people shop, not just during the fourth quarter gift-buying season but throughout the year," Unity Marketing President Pam Danziger said in a release announcing the results.

For more information on the report, go to www.unitymarketingonline