NRF Offers Holiday Sales Prediction

September 18, 2006  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on September 2006 This year’s holiday season may not be as bright and cheery for retailers as past years.

That’s according to the National Retail Federation’s latest prediction for holiday sales. The organization is predicting a 5 percent increase in retail sales bringing holiday spending to $457.4 billion during the months of November and December. That’s compared to last year’s holiday sales of $435.6 billion, which climbed 6.1 percent from 2004’s sales.

“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, the average percentage increase in sales for the holiday season is 4.6 percent. One-fifth of retail industry sales, or 19.9 percent, occur during the holiday season, making it the most important time 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, NRF president and chief executive officer. “If gas prices continue to fall, shoppers will find a little something extra in their wallets, giving them even more reason to celebrate.”