NRF boosts holiday forecast

HTT Staff -- Home Textiles Today, 12/15/2011 2:29:09 PM

Washington D.C. - The National Retail Federation today raised its forecast for holiday spending and now expects year-over-year sales to rise 3.8% to $469.1 billion.

NRF's initial forecast, announced Oct. 6, anticipated sales growth of 2.8%. While a 3.8% sales increase is above the 10-year average sales increase of 2.6%, it is still lower than the 5.2% increase the retail industry saw last year.

"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 Matthew Shay, NRF president and ceo. "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."

Earlier this week, the organization announced that retail industry sales for November rose 4.5% year-over-year. In addition, NRF's most recent holiday survey found the average American has completed far less of their holiday shopping than in previous years - an indication that many shoppers bought for themselves in November and have plenty of holiday shopping left to do.