U.S. Holiday Sales Forecasted to Increase 2.8% to $465.6 Billion

(IDEX Online News) – The 2011 holiday season is expected to be no more than average, according to some analysts, only slightly outpacing the ten-year average.

November-December retail sales are expected to increase 2.8 percent to $465.6 billion, according to the National Retail Federation. While that growth is far lower than the 5.2 percent increase retailers experienced last year, it is slightly higher than the ten-year average holiday sales increase of 2.6 percent.

“Retailers are optimistic that a combination of strong promotions and lean inventory levels will help them address consumer caution this holiday season,” said NRF President and CEO Matthew Shay. “While businesses remain concerned over the viability of the economic recovery, there is no doubt that the retail industry is in a better position this year to handle consumer uncertainty than it was in 2008 and 2009.”

Though several economic indicators paint a solid picture for the holiday season – including 14 consecutive months of retail sales growth and a substantial reduction in household debt – continued consumer uncertainty over the stock market, higher gas and food prices, fiscal policy and sputtering job growth will impact spending this holiday season.

On a somewhat brighter outlook, NRF estimates retailers in the U.S. will hire 480,000-500,000 seasonal workers, providing an opportunity for many to earn some extra cash during difficult times.