WASHINGTON One of the world's largest retail trade associations is projecting that holiday sales will increase by a moderate 2.3% to $447.1 billion.
The National Retail Federation said that while growth remains slightly lower than the 10-year average holiday sales increase of 2.5%, it would be a marked improvement from both last year’s 0.4% uptick and the dismal 3.9% holiday sales decline retailers experienced in 2008.
“While many consumers will be wishing for apparel and electronics this holiday season, retailers are hoping the holidays bring sustainable economic growth,” said NRF president and CEO Matthew Shay. “Though the retail industry is on stronger footing than last year, companies are closely watching key economic indicators like employment and consumer confidence before getting too optimistic that the recession is behind them.”
NRF’s holiday sales forecast is based on an economic model using several indicators, including employment, industrial production, disposable personal income and previous monthly retail sales reports. NRF defines holiday sales as those made in November and December.