Modest Rise in Holiday Retail Sales Expected

October 07 00:00 2011

New York, October 7 (RainbowNewsLine.com) – National Retail Federation has forecasted a modest rise of 2.8% in revenues in holiday retail sales over last year. This figure is slightly higher than the 10-year average holiday sales increase of 2.6% but it is significantly lower than what the industry reported in 2010. Matthew Shay, president of the National Retail Federation said that there is optimism among retailers that consumer caution during November and December will be dealt with by them through strong promotions and lean inventory levels.

The National Retail Federation, a trade group, said that retail sales will reach $465.6 billion in the upcoming shopping season. The projected 2.8% rise is significantly lower than the 5.2% increase that the industry reported in 2010. It summed up its conclusion by saying that “The 2011 holiday season can be summed up in one word: average.”

Mathew Shay further stated that “While businesses remain concerned over the viability of the economic recovery, there is no doubt that the retail industry is in a better position this year to handle consumer uncertainty than it was in 2008 and 2009.”

The economic factors that could adversely affect the holiday sales this year include higher gas and food prices, continued uncertainty over the stock market, and a sluggish jobs situation.

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