NRF: Holiday Sales Marked Lowest Growth Since 2002

Overall holiday sales in 2007 rose a mere 3 percent over the previous year to $469.9 billion, weaker than the National Retail Federation’s (NRF) projected 4 percent holiday forecast. This represents the lowest holiday season growth since 2002, when sales rose 1.3 percent.

Retail industry sales for December (excluding automobiles, gas stations and restaurants) saw an increase of 1.7 percent unadjusted over 2006; moreover, December’s sales decreased 0.4 percent seasonally adjusted over November. November retail industry sales were revised downward to 4.7 percent growth from the initial 5.1 percent reported last month.

“Economic pressures caused deterioration in the sales climate at the end of the year,” said NRF Chief Economist Rosalind Wells. “Because holiday sales were disappointing, retailers will have to quickly adapt with pricing strategies and promotions that will encourage consumers to spend.”

Details on jewelry sales during the holiday season were not provided.

NRF is forecasting that retail industry sales will increase 3.5 percent in 2008.