NRF Predicts Above-Average Holiday Sales
Despite a surprising amount of resilience on the part of consumers,
retailers can expect total retail sales in November and December
to increase only 5 percent over last year, bringing holiday
spending to $457.4 billion, according to the National Retail
Federation (Washington). By comparison, 2005 holiday sales increased
6.1 percent from the previous year.
“Consumers have faced a number of economic challenges
this year and have taken them in stride,” said Rosalind
Wells, NRF chief economist. “Although sales gains will
not be as robust as last year, retailers can still expect
above-average holiday sales growth.”
Over the last 10 years, holiday sales have increased an average
of 4.6 percent each year. Because 20 percent of retail industry
sales occur during the holiday season, this is the most important
period of the year for the industry.
“Consumers make small sacrifices all year so they can
splurge a little during the holidays,” said Tracy Mullin,
president and chief executive officer of NRF. “If gas
prices continue to fall, shoppers will find a little something
extra in their wallets, giving them even more reason to celebrate.”
The NRF is the world’s largest retail trade association,
representing all retail formats and channels of distribution.
[November 2006 PET AGE]
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