Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Holiday sales outlook hinges on bargains

By Jessica Dickler, staff writer


NEW YORK (CNNMoney.com) -- As the holidays approach, consumers are getting back in the buying mood, but only if the price is right.

Holiday retail sales are expected to increase 2.3% this year to $447.1 billion, according to a study released Wednesday by the National Retail Federation.

The rise marks an improvement from last year's 0.4% uptick, but is still below the ten-year average holiday sales increase of 2.5%. Overall sales have been choppy so far this year as concerns about the economic recovery abound.

"While consumers have shown they are once again willing to spend on what's important to them, they will still be very conscientious about price," federation chief economist Jack Kleinhenz said in a statement. "Retailers are expected to compensate for this fundamental shift in shopper mentality by offering significant promotions throughout the holiday season and emphasizing value throughout their marketing efforts."

Retailers will likely keep their inventories lean to limit their exposure to excess merchandise and unplanned markdowns, the NRF said.

"Though the retail industry is on stronger footing than last year, companies are closely watching key economic indicators like employment and consumer confidence before getting too optimistic that the recession is behind them," said Matthew Shay, the retail group's president. To top of page

Search for Jobs

Index Last Change % Change
Dow 19,756.85 142.04 0.72%
Nasdaq 5,444.50 27.14 0.50%
S&P 500 2,259.53 13.34 0.59%
Treasuries 2.46 0.08 3.23%
Data as of 4:13am ET
Company Price Change % Change
Bank of America Corp... 23.09 0.14 0.61%
Ford Motor Co 13.17 0.14 1.07%
Chesapeake Energy Co... 7.72 0.12 1.58%
Twenty-First Century... 28.21 -0.43 -1.50%
Apple Inc 113.95 1.83 1.63%
Data as of Dec 9
Sponsors

Sections

Even Carl Icahn, one of President-elect Donald Trump's biggest cheerleaders on Wall Street, thinks the post-election exuberance in the stock market has gotten a bit out of hand. More

Republican leaders keep saying Obamacare is hurting the economy and killing jobs, but there's scant evidence for it. In fact, a number of studies show that the economy has been growing. More

Facebook admits it messed up more ad metrics than previously thought, potentially eroding its trust and relationship with marketers and publishers. More

The Los Angeles city attorney is suing four major retailers over claims that they deliberately inflated the original price on some items that misled customers into thinking they were getting a better deal. More