Solid Retail Growth Expected This Holiday Season; Online to Increase 12%
October 03, 12
(IDEX Online News) – Despite political and fiscal uncertainties, this year’s U.S. holiday sales are expected to increase 4.1 percent to $586.1 billion according to the National Retail Federation’s (NRF) 2012 holiday forecast. Actual holiday sales grew 5.6 percent in 2011.
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“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.”
Shop.org has also released its online holiday sales growth expectations, with predictions that the online sector will grow some 12 percent over Holiday 2011 to as much as $96 billion.
The U.S. Department of Commerce estimates that total 2011 fourth quarter e-commerce sales increased 15 percent.
“While moderate compared to what we experienced the last two holiday seasons, the forecast is a very pragmatic look at what to expect this year given the current rate of economic growth,” said NRF chief economist Jack Kleinhenz, Ph.D.
“There’s still some general anxiety amongst consumers when it comes to how the state of the economy is impacting their spending plans, but retailers can expect to see excitement around their promotions and plenty of bargain hunters both online and in stores in the coming months.”