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Market Developments
Holiday sales growth of 4% beat forecasts
Washington--Retailers’ holiday sales this year increased 4 percent over 2010 to $471.5 billion, according to the National Retail Federation (NRF).
The NRF had previously forecasted holiday sales to increase 3.8 percent.
“The right mix of strong promotions, lean inventories and an emphasis on value put retailers in the perfect position to end the year on a high note,” Matthew Shay, president and CEO of NRF, said. “A better-than-expected holiday season is welcome news for an economic recovery that continues to be sluggish, and demonstrates retail’s powerful role as an engine of growth.”
December retail sales released by the United States Department of Commerce shows that total sales increased 0.1 percent seasonally adjusted over November, and 6.2 percent unadjusted year-over-year.
“In a matchup between the final two months of 2011, November clearly wins, but in the end retailers’ promotions struck the right chord for budget-focused holiday shoppers,” Jack Kleinhenz, chief economist of NRF, said. “Though we are seeing evidence that the economy still has a critical hold on consumers’ purchase decisions, this strength in spending could continue into 2012.”
According to the NRF, retailers operate more than 3.6 million establishments in the U.S. that support one in four jobs, or 42 million working Americans.









