The National Retail Federation has announced that it expects holiday retail sales in November and December – excluding automobiles, gasoline and restaurants – to increase between 3.6 and 4 percent for a total of $678.75 billion to $682 billion, up from $655.8 billion last year.
Christmas falls 32 days after Thanksgiving this year, one day more than last year, and is on a Monday instead of Sunday, giving consumers an extra weekend day to complete their shopping.
This year’s forecast would meet or exceed last year’s growth of 3.6 percent and the five-year average of 3.5 percent. While recent hurricanes are not expected to have a significant long-term effect on the economy, NRF is issuing this year’s forecast as a range rather than the usual fixed percentage because the impact of the storms on economic indicators has made it difficult to make a more precise forecast.
As part of its forecast, NRF expects retailers to hire between 500,000 and 550,000 temporary workers this holiday season, down from last year’s 575,000.
“Our forecast reflects the very realistic steady momentum of the economy and overall strength of the industry,” said Matthew Shay, president and CEO of NRF. “Although this year hasn’t been perfect, especially with the recent devastating hurricanes, we believe that a longer shopping season and strong consumer confidence will deliver retailers a strong holiday season.”
“Consumers continue to do the heavy lifting in supporting our economy, and all the fundamentals are aligned for them to continue doing so during the holidays,” added Jack Kleinhenz chief economist of NRF. “The combination of job creation, improved wages, tame inflation and an increase in net worth all provide the capacity and the confidence to spend.”