Maria Halkias reports today in the Dallas Morning News that the National Retail Federation predicts holiday sales will rise only 2.2 percent this year to $470 billion in light of our country's continuing financial woes.
Let's not all make a run on the bank at once.
Sure, times are tough, but let's keep in mind that the prediction is still for an increase in our shopping spending this year when compared to last year. I might not be forking out the 4 percent the Federaton was predicting, but they're still betting on me beating last year's feat.
Gift cards are getting hit the hardest to only $25 billion this holiday season. Boo-hoo.
Things aren't looking good right now, but this useless stat is not a sign of the coming depression. What will be interesting is to see how we as consumers really react come Christmas. Will we forego our comforts and luxuries and gluttonies as we celebrate this year? I doubt it.
I'm starting to think Phil Gramm was right about us whiny Americans.
I think you're wrong on this one. BOA is supposedly closing about 60% of their credit card accounts and most americans put christmas purchases on credit cards so you do the math.
Credit is just not going to be available like it has in the past and this will lead to less sales. People may want to buy but they won't have the cash or credit to do so. Hold on...it's going to be a rocky few months.
Posted by: Jack | September 29, 2008 at 03:11 PM
Could be, but with your point, I think the study will be wrong. Granted, it was conducted BEFORE all the bailout talk, but my main point has to do with the study in that the media is reporting that a 2.2 percent rise in spending is horrendous. Let's start worrying when it actually is less than last year's holiday shopping.
Posted by: Brett | September 30, 2008 at 06:47 AM
don't you think inflation accounts for at least 2% of that? which means there isn't actually an increase.
Posted by: Jack | September 30, 2008 at 08:11 AM
Very well could.
Posted by: Brett | September 30, 2008 at 09:13 AM
I wonder if those numbers include shipping costs? As those costs have increased over last year and more and more people are shopping online.
Posted by: Jack | September 30, 2008 at 09:30 AM