Sep 17, 2007

Analysts Foresee So-So Holiday Sales SeasonBy Jeanine PoggiWWD.com

Holiday spending may mirror back-to-school trends, surging late in the season.

“This holiday will not be that bad for fashion,” said Marshal Cohen, chief retail strategist at The NPD Group. “Customers will not be distracted by too many new, must-have electronics, and it seems like people will return to more traditional gifts, with women rebuilding their wardrobes.”

Rising interest payments on mortgages, increased home-heating fuel costs and weather will all play a roll in consumer spending at retail this holiday, predicted Stanley Officina, president, Ultimate Financial Solutions.

The increase in foreclosures and “for sale” signs could translate into softer spending come the holidays, said David Reza, senior vice president, Milberg Factors.

“If consumers can’t meet their mortgage payment, they are not going to buy new clothes,” said Andrew Tananbaum, president and chief executive officer, Capital Business Credit LLC. “But it really depends on how deep the foreclosures run and the weakness of the economy. More data is necessary.”

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