NRF expects a 2.8% increase in holiday sales | Key4Communications | News

US retail sales could increase 2.8% to $465.6 billion in November and December, according to the National Retail Federation (NRF). Last year growth was of 5.2%, but the last ten-year average increase is slightly lower: 2.3%

“Retailers are optimistic that a combination of strong promotions and lean inventory levels will help them address consumer caution this holiday season,” said NRF President and CEO Matthew Shay. “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.”

Though several economic indicators paint a solid picture for the holiday season – including 14 consecutive months of retail sales growth and a substantial reduction in household debt – continued consumer uncertainty over the stock market, higher gas and food prices, fiscal policy and sputtering job growth will impact spending this holiday season. Additionally, the substantial year-over-year gains for the 2010 holiday season will create more difficult comparisons for retailers to achieve this year.

Holiday hiring
The NRF expects thay retailers will hire between 480,000 and 500,000 seasonal workers this holiday season, which is comparable to the 495,000 seasonal employees they hired last year. Retailers have also been hiring throughout the last year: since last August, the retail industry has added nearly 100,000 jobs.