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

Index Last Change % Change
Dow 17,798.49 -14.90 -0.08%
Nasdaq 5,127.53 11.38 0.22%
S&P 500 2,090.11 1.24 0.06%
Treasuries 2.22 -0.01 -0.31%
Data as of 7:30am ET
Company Price Change % Change
General Electric Co 30.36 0.00 0.00%
Bank of America Corp... 17.48 0.04 0.23%
HP Inc 12.61 -0.03 -0.24%
Pfizer Inc 32.79 -0.08 -0.24%
Walt Disney Co 115.13 -3.54 -2.98%
Data as of Nov 27


Nearly six in ten black Americans surveyed by CNN/Kaiser Family Foundation say that they or a close friend or family member have been incarcerated -- and a majority of them come from low-income households. That leaves the many families of inmates in a precarious financial situation. More

Hive, a startup funded by the UN, is tasked with getting more Americans engaged with the refugee crisis. More

Shoppers around the country braved the crowds to get their hands on the best Black Friday deals. More