Holiday Sales Outlook: Santa Tightens His Belt Another Notch

Santa’s sleigh will likely be a bit lighter this year as the aftereffects of the Great Recession continue to take a toll on household purchasing power. We estimate holiday retail sales will decline 0.8 percent this year, marking the first back-to-back declines since records began in 1993. Even with the drop, consumers will still turn out in force and the stores will be full. Folks will simply spend … Santa’s sleigh will likely be a bit lighter this year as the aftereffects of the Great Recession continue to take a toll on household purchasing power. We estimate holiday retail sales will decline 0.8 percent this year, marking the first back-to-back declines since records began in 1993. Even with the drop, consumers will still turn out in force and the stores will be full. Folks will simply spend a little less than they did last year, and many retailers have prepared for that by stocking lots of lower-priced merchandise. Many are also going into the holiday season with relatively lean inventories, which means door-buster deals may be more limited this year. Thank you for your interest in Wells Fargo’s Economic Commentary by Email. You are receiving this message because you have requested Economic Commentary information and updates sent via email. If you no longer wish to receive these emails, please click on the following link to access the Economic Commentary by Email registration page: http://www.wachovia.com/economicsemail.

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