WASHINGTON (dpa-AFX) - Retailers will end 2020 on positive note after being heavily impacted by the coronavirus pandemic, according to forecast by a retail trade association.
The National Retail Federation expects 2020 holiday sales to rise between 3.6% and 5.2% year over year, amounting to between $755.3 billion and $766.7 billion.
This compares to a 4 percent increase to $729.1 billion last year and an average holiday sales increase of 3.5 percent over the past five years.
'We know this holiday season will be unlike any other, and retailers have planned ahead by investing billions of dollars to ensure the health and safety of their employees and customers,' NRF President and CEO Matthew Shay said. 'Consumers have shown they are excited about the holidays and are willing to spend on gifts that lift the spirits of family and friends after such a challenging year. We expect a strong finish to the holiday season, and will continue to work with municipal and state officials to keep retailers open and the economy moving forward at this critical time.'
According to the forecast, a strong stock market, rising home values and record personal savings rates will drive spending. With reduced spending on personal services, travel and entertainment, consumers will have extra money to spend during the holiday period.
'Given the pandemic, there is uncertainty about consumers' willingness to spend, but with the economy improving most have the ability to spend,' NRF Chief Economist Jack Kleinhenz said. 'Consumers have experienced a difficult year but will likely spend more than anyone would have expected just a few months ago.
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