NRF Upgrades Holiday Sales Forecast to $469.1 Bln, Up 3.8%
December 15, 11
(IDEX Online News) – It may not be a white Christmas this year, but it is certainly going to be a green one, at least according to the National Retail Federation (NRF). The world’s largest retail trade association today announced that it has revised its initial holiday forecast (released on October 6) upward and expects holiday sales to rise 3.8 percent to a record $469.1 billion.
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“After strong sales reports in October and November, along with a successful Black Friday weekend, retailers are cautiously optimistic that this season will turn out better than initially expected, bringing added stability to our recovering economy at a time when America needs it most,” said NRF president and CEO Matthew Shay. “However, a number of factors, including the debt crisis in Europe and continued political wrangling in Washington, could impact consumer spending this holiday season and into 2012.”
The good news followed NRF’s announcement this week that retail industry sales for November rose 4.5 percent year-over-year. In addition, the organization’s most recent holiday survey found that the average American had completed far less of their holiday shopping than in previous years – an indication that many shoppers splurged only on themselves in November. This means that consumers should have plenty of last-minute holiday shopping left to do.
“Consumer spending this holiday season has surpassed expectations, though many shoppers continue to stick to their budgets and buy only what they need,” said NRF chief economist Jack Kleinhenz. “Despite modest job and income growth, consumers have continuously proven they have the capacity to spend and we are encouraged by this and the recent sales growth we have seen so far this year.”