Jan 27, 2009

NRF: Retail sales to drop 0.5 percent in 2009By NationalJewelerNetwork.com

Washington–Retail industry sales, excluding automobiles, gas stations and restaurants, are expected to decrease 0.5 percent compared with 2008, as consumers continue to shift their spending priorities, according to the National Retail Federation’s (NRF) 2008 economic forecast, released on Tuesday.

“Most of the consumer behavior we saw in 2008 will continue well into this year,” NRF Chief Economist Rosalind Wells said in a media release issued this morning. “Shoppers will be seeking value and trading down to discount and off-price retailers in order to stretch their purchasing power.”

According to the NRF, retail sales for the first half of 2009 are expected to decrease 2.5 percent. There will be some improvement in the third quarter, with sales decreasing 1.1 percent. And in the fourth quarter, sales are expected to increase 3.6 percent due to comparisons with the same period in 2008 as well as a strengthening economy.

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