Posted on 09/20/2007 2:25:52 AM PDT by Hydroshock
U.S. holiday sales are expected to rise at their slowest pace in five years as the weak housing market and a credit crunch temper consumer spending, the National Retail Federation said Thursday.
Total holiday retail sales are forecast to rise 4% to $474.5 billion this year, the trade group said.
That would mark the slowest holiday sales growth since 2002, when sales rose 1.3%, and it would fall below the ten-year holiday sales average of a 4.8% increase.
"Retailers are in for a somewhat challenging holiday season as consumers are faced with numerous economic obstacles," said NRF Chief Economist Rosalind Wells in a statement. "With the weak housing market and current credit crunch, consumers will be forced to be more prudent with their holiday spending."
The holiday shopping season is crucial to retailers as it can bring in anywhere from 20 to 25% of their annual sales during November and December, according to the NRF.
Many retailers have already warned the second half of the year will be more difficult than the first as consumers confront a weaker housing market, higher fuel and food costs.
(Excerpt) Read more at cnbc.com ...
Pardon me while I just jump out of this basement window.
Lowering interest rates, is like moving the dollar from nice department stores, to a table at a flea market. After all they know what it is worth.
Pardon me while I just jump out of this ground level window.
WE ARE ALL GONNA DIE!
Prediction: Online retailers are going to make out like bandits this year. Brick and mortar stores will get the shaft from consumers who don’t want to stand in endless lines or pay for the store’s fancy decorations and fake holiday cheer.
Further prediction: More states will start pushing for sales tax on items bought over the internet.
"Taking out equity," meaning "borrowing against your house" to do holiday shopping. Nothing like using a mortgage to buy that new xBox. Maybe the decline in the "boom" will help to save some people from themselves...
It isn’t going to hurt holidday sales. The people who are being hit had no idea how to manage money in the first place and always kept spending on other “stuff” which is what got them into trouble in the first place.
So now a predicted increase that is 0.8% less than the average is a crisis!
maybe the nickel candy bar will come back and only cost $0.05
I work for an online retail company, specifically in the online marketing department. Our business has never been better and we deal with products the home buyer would use for DIY projects. We, like others, charge sales tax to those within our state, however, I’m always amazed at the volume of business generated from our state. If it were me, I’d probably buy from a company selling a similar product outside the state, to avoid the sales tax. But it doesn’t seem to stop people from purchasing our products within the state.
I, personally, have already bought my Christmas presents...you guessed it, online.
Yup. There just is no good reason to go to the store in the Holiday Hell Season anymore - just about anything you want you can either buy early, get online, or have delivered.
And, it turns out when you factor in the time and fuel you save by not braving the malls and driving all over creation, it’s almost always cheaper to buy online as well - even if it comes to more with shipping than the item is in the store.
I think those that “enjoy” the experience of shopping will continue to go to malls and stores, but for me, the postman or UPS delivering the item to my door is my idea of “the perfect shopping experience.”
While price is of paramount importance to many buyers, there are also many buyers for whom the convenience of the online purchase overrules all. Part of that convenience is having found an item, quickly clicking through to sale completion, and moving on to the next thing in a long to-do list, versus messing around finding “the best price”.
Also, there are those for whom the ability to chase down a vendor semi-locally, if need be, is important.
Spend!
Spend!
Spend your way to prosperity, America!
Taking out home equity loans to finance current operating expenses is nuts. THat said, the only family on my block that did and does so are hard Dems. Hell, the husband worked for the Clinton campaign and got a job at FNMA. While this may be a trait of Dems, it is my observation that normal people know how toi manage money.
Every year holiday sales are projected to be poor, and every year they far surpass expectations.
Analysts and reporters must have short memories.
Every year they forecast lower consumer spending at Christmas, every year they have a different reason, and every year they’re wrong.
“Further prediction: More states will start pushing for sales tax on items bought over the internet.”
You don’t need to be Karnak to see this, and every other possible tax coming from a mile away.
The value of the Dollar is free falling.
It ls like like people are claiming inflated values as wealth. The Dollar is like a rare baseball card they keep printing more of.
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