More modest sales growth ahead, the NRF predicts
The National Retail Federation predicts that retail spending will increase 4.7% this year over last, significantly lower than 2005’s 6.1% growth.
“With the housing market beginning to slow, consumers will be challenged to find new sources of spending power,” said NRF Chief Economist Rosalind Wells. “The strong retail sales we saw in the second half of 2005 will be replaced by more conservative spending in the New Year.” NRF expects 2006 first quarter retail sales to increase 5.0 percent, compared to gains of 6.5 percent in the fourth quarter of 2005.
NRF expects several categories of specialty retailing to achieve solid sales growth, including clothing and accessory stores, food and beverage retailers and health and personal care retailers. It also expects building-related outlets and furniture stores will lose some momentum as housing softens. NRF expects electronics retailers to sustain strong demand for their merchandise as product excitement and attractive pricing will lure consumers. The NRF also reports that sales gains at discount stores improved at year-end as increases at luxury goods retailers eased.
Back...
