New York – Holiday sales are projected to increase 5 percent, less than the 6.7 percent gain in 2004, as higher energy prices, the economic fallout from Hurricane Katrina, shaky consumer confidence and a volatile job market dampen spending, the National Retail Federation said today.
The good news for consumers? They won’t have to wait to get the best deals this year because merchants are expected to be “aggressive in their pricing strategies throughout the entire holiday season,” said Rosalind Wells, chief economist for the Washington- based trade association.
After steady sales throughout the year, the consumer spending pace slowed this summer, and analysts are worried about the fall selling season, which hasn’t kicked in for many merchants.
Another challenge for the industry will be a tough comparison with 2004, when merchants reported sizable gains, the National Retail Federation said.
Holiday sales encompass business in November and December.
