US NRF confident of record retail sales during 2021 holiday season

NRF forecast recently that 2021 holiday retail sales during November and December will grow between 8.5 per cent and 10.5 per cent over 2020 to a total between $843.4 billion and $859 billion. Even at the low end of the forecast, that would be both the largest growth rate—topping last year’s 8.2 per cent—an d the largest total amount—beating last year’s $777.3 billion—on record, NRF said in a press release.

The forecast includes online sales, which are expected to be up between 11 per cent and 15 per cent to between $218.3 billion and $226.2 billion.

“There are several factors coming together to have a major impact on the holiday outlook, but household fundamentals are a bright spot in the uncertain present,” Kleinhenz said. “Consumers are in a very favorable position going into the last months of the year and are spending because they can.”

Kleinhenz said the pandemic raises the questions of whether COVID-19 cases will continue their downward trend and whether that will increase consumer confidence and lead to increased spending.

Kleinhenz said the strong growth in income and ‘stockpiled savings’ should help spending overcome inflation that has been driven both by consumer demand and supply chain disruptions.

Kleinhenz said higher gasoline prices and higher energy costs for home heating will divert some money that could otherwise go to retail sales, especially with weather forecasters saying a La Niña pattern will likely bring cold weather this winter. Nonetheless, a La Niña has coincided with stronger retail sales in the past.

Fibre2Fashion News Desk (DS)