Report Predicts Worst Holiday Since 2008

This holiday season may turn out to be the worst for retailers since 2008, according to a new report by Morgan Stanley quoted by Business Insider. 

The investment firm’s report, “Expect Coal: We Predict the Weakest Holiday Since 2008,” forecasts a scant 1.6 percent jump in same-store sales this season, citing an uncertain economy, a more condensed calendar, and increased promotional activity from retailers.

The report also points to continued drops in consumer confidence and a National Retail Federation finding that says Halloween sales have dropped, as well as a survey finding that 79.5 percent of consumers plan to spend less this holiday.

It also forecasts that consumer this holiday are spending more on big-ticket items like cars and appliances, and less on gifts.

Other forecasters aren’t so pessimistic: ShopperTrak sees a 2.4 percent rise; Deloitte sees a 4 to 4.5 percent increase; and the National Retail Federation predicts a 3.9 percent jump.

 

JCK News Director