NRF predicts 2.5% rise in retail sales this year

Share this article:

The National Retail Federation predicted that retail industry sales will increase 2.5% this year over 2009. Last year, total retail sales declined 2.5% over the prior year.

The increase in retail sales is attributed to factors such as the housing market and employment picture. Those developments should bolster consumer confidence throughout the year, according to the NRF.

Trade, especially strong exports, a turnaround in the inventory cycle and federal government spending will also be positive economic contributions throughout this year, according to the NRF. The group also predicted in a statement that consumer spending will lag behind overall economic growth, but expand at a 2% to 2.5% rate.

“Overall sentiment will begin to lift, making way for slight increases in consumer spending,” Rosalind Wells, chief economist at the NRF, said in a statement. “While we still expect shoppers to continue to be frugal with their discretionary spending, retailers will soon be able to reap the benefits of leaner, smarter inventories and a year and a half of pent up consumer demand.”

Earlier this month, the NRF revealed that holiday retail, which includes the full moths of November and December, rose 1.1% over the prior year. Last October, the NRF predicted a 1% decline in 2009 holiday shopping.

An NRF representative could not be immediately reached for comment.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

Wine.com Uncorks New Digital Marketing Opportunities

Wine.com Uncorks New Digital Marketing Opportunities

The online wine retailer's strategy incorporates different flavors and depths.

93% of Companies Are Ineffective at Cross-Channel Marketing

93% of Companies Are Ineffective at Cross-Channel Marketing ...

Companies point to a lack of resources as the most common reason for lackluster marketing integration, a study says.

Metal Mulisha Races Towards Customization

Metal Mulisha Races Towards Customization

The motocross apparel company boosts mobile and Web conversions through product recommendations and personalized search.