With the holiday shopping season shifting into high gear, Deloitte & Touche expects a warming trend in consumer spending to drive modest retail sales growth. The firm predicts a 3 to 4% increase in
November and December sales figures. Although lower than last year’s 5.6% sales increase, the firm says low consumer confidence wont’ take as big a bite as some expect. Deloitte & Touche’s poll found
that one-third (36%) expect to spend less this year. When asked why they'll spend less, respondents cited concerns about the economy (39%), high personal debt (32%), and salary decreases (26%) as the
three most important reasons. 13% said their jobs are “not very secure,” compared to 9% in 2000. “It is clear that retailers need to focus more than ever on effective inventory management, cost
controls and value-oriented pricing strategies to survive in this challenging environment,” says Irwin Cohen, managing partner of Deloitte & Touche’s Global Consumer Business Practice. In fact,
discount department stores were cited by nearly two out of five as the place they plan to spend the largest portion of their holiday budgets. The poll of 13,000 U.S. residents was conducted between
November 1 and 5.
