Southern California Report - November 2009 2009 Holiday Shopping Poll Southern California Report - November 2009

Background & Methodology This survey was conducted among members (and nonmembers in some markets) to learn about their spending plans for holiday shopping. An online survey was fielded to 718 in the Auto Club of Southern California territory (618 members, 100 non-members) The survey fielded from October 9 to October 20, 2009. These surveys averaged 6 minutes in length.

About 4 in 5 Southern Californians Will Spend $1,000 or Less This Holiday Season The largest proportion (40%) will spend between $101 and $500. n=718 Q8: “About how much in total do you expect to spend on gift shopping during the 2009 holiday season?” Base: Households in Southern California.

In-Store is the Dominant Holiday Shopping Channel for Southern Californians The online channel is also an important secondary channel n=718 Q9: “Please indicate the approximate percentage you expect to spend using the following channels during the 2009 holiday season.” Base: Households in Southern California. 4

Southern Californians Stretching Their Dollars This Holiday Season The majority of respondents stated they will spend less this holiday season. A majority also stated they will be buying gifts for about the same number of people this holiday season. ’09 $$$ Spending Compared to Before the Economic Downturn ’09 # of People Will Buy Gifts for Compared to Before the Economic Downturn Will spend more in ‘09 Will buy gifts for more people in ‘09 Will spend about the same amount in ‘09 Will buy gifts for about the same number of people in ‘09 Will spend less in ‘09 Will buy gifts for fewer people in ‘09 n=718 n=718 Q10: “You indicated that you expect to spend about $[amount spent from Q8] during the 2009 holiday season. How does this amount compare to your holiday gift shopping spending in years prior to the current economic downturn?” Q11: “How does the number of people you plan to buy gifts for during the 2009 holiday season compare to the number of people you would buy gifts for in years prior to the current economic downturn?” Base: Households in Southern California. 5

Two-Thirds of Southern Californians Will Give Gifts of Apparel and Accessories Gift cards/gift certificates and Toys were also common gift categories. n=718 Q12: “Please indicate in which of the categories below you will be shopping for gifts during the 2009 holiday season. (Select all that apply).” Base: Households in Southern California. 6

Nearly 7 in 10 Southern Californians Will Shop for Gifts at a Discount Store this Holiday Season Online, General department stores and Shopping malls were also commonly cited retail outlets. n=718 Q13: “Please indicate in which of the following types of retail outlets you will be shopping for gifts during the 2009 holiday season. (Select all that apply).” Base: Households in Southern California. 7

Looking for Less Expensive Gifts Is the Primary Way Southern Californians Are Trying to Save Money this Holiday Season Online, General department stores and Shopping malls were also commonly cited retail outlets. 22% for AAA members n=718 Q14: “How are you planning to change your gift shopping habits during the 2009 holiday season, if at all? (Select all that apply).” Base: Households in Southern California. 8