Coming off of a weak back-to-school shopping period, a research firm expects holiday sales growth will be slower this year during the crucial holiday season. Shoppers are also expected to visit fewer stores as they research purchases online, The Associated Press reported on Tuesday.
Retail revenue in November and December should rise 2.4 per cent during the biggest shopping period of the year, Chicago-based research firm ShopperTrak said Tuesday.
That compares with a three per cent increase in 2012 from 2011.
“Although, the economy continues to recover slowly, consumers remain cautious about spending and are not ready to splurge,” said ShopperTrak founder Bill Martin.
While the job picture has been improving in the US and the turnaround in the housing market is gaining traction, the improvements have not been enough to sustain higher levels of spending for most Americans. Most continue to juggle tepid wage gains with a higher cost of living.
In August, revenue at stores opened at least a year — a measure of a retailer’s health — rose 3.6 per cent, according to a tally of 10 retailers by the International Council of Shopping Centres. That’s up a tad from July’s 3.5 per cent gain, but below the six per cent gain in August last year.
The cautious spending last month capped a weak back-to-school selling season for retailers and raised questions about whether Americans would spend in November and December, a time retailers can make up to 40 per cent of their revenue for the year.