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Center for Education and Research in Retailing Projects a 1 Percent Decline in ...

29.10.09

Newswise - While the forecast for 2009 holiday retail sales is not as grim as a year ago, when seasonal activity fell by 3.8 percent from 2007, the Center for Education and Research in Retailing at Indiana University's Kelley School of Business still projects a 1 percent decline.

The center projects sales in November and December will total $437 billion. The forecast is only for holiday sales during the last two months of 2009 and excludes retail sales at restaurants, gas station and online. It includes all traditional brick-and-mortar retailers across all formats and categories.

"Going into the fourth quarter last year, there was really nothing that retailers could do mid-October to impact the holiday season at that point. It was basically a ruined season," said Theresa D. Williams, the center's director, adding that many retailers were forced to slash prices by as much as 70 percent in order to reduce inventories.

"We're 13 months away from that really awful season. Most of the big shocks for retailers and consumers are over. The customer is still dealing with unemployment rates at or near record highs and a tight credit market, but we don't see those kinds of discounts going into this holiday," she said.

Source: NewsBlaze