Retail Group Optimistic About Holidays Sales
The National Retail Federation believes there will be a surge in holiday activity. Its forecast is particularly optimistic in light of worries about the fiscal cliff, an apparent slowing of the number of companies and governments adding news jobs, as well as GDP improvement that is anemic. Nevertheless, the NRF predicts:
Tempered by political and fiscal uncertainties but supported by signs of improvement in consumer confidence, holiday sales this year will increase 4.1 percent to $586.1 billion. NRF's 2012 holiday forecast is higher than the 10-year average holiday sales increase of 3.5 percent. Actual holiday sales in 2011 grew 5.6 percent.
"This is the most optimistic forecast NRF has released since the recession. In spite of the uncertainties that exist in our economy and among consumers, we believe we'll see solid holiday sales growth this year," said NRF President and CEO Matthew Shay. "Variables including an upcoming presidential election, confusion surrounding the 'fiscal cliff' and concern relating to future economic growth could all combine to affect consumers' spending plans, but overall we are optimistic that retailers promotions will hit the right chord with holiday shoppers."
Douglas A. McIntyre
Filed under: 24/7 Wall St. Wire, Retail