The National Retail Federation today released its forecast for the upcoming 2007 holiday season, predicting that sales will rise 4% this year to US$474.5 billion.
"Retailers are in for a somewhat challenging holiday season as consumers are faced with numerous economic obstacles," said NRF Chief Economist Rosalind Wells. "With the weak housing market and current credit crunch, consumers will be forced to be more prudent with their holiday spending."
The 2007 holiday sales increase is expected to fall below the ten-year average of 4.8%. It would represent the slowest holiday sales growth since 2002, when sales rose 1.3%.
NRF will release its first in a series of holiday surveys on Oct. 16, polling consumers on where they will shop and how much they plan to spend.
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