The gradually recovering economy held the promise of an improved holiday shopping season. As jobs increased, the number of shoppers with additional cash to spend rose. However, initial estimates about retail sales may need to be revised due to the United States' government shutdown. 

Currently, the National Retail Federation (NRF) predicted that sales between November and December will increase by 3.9 percent over the 2012 season. However, this may change depending on how quickly the government resolves the shutdown. 

"Our forecast is also somewhat hinging on Congress and the Administration's actions over the next 45 days," said Matthew Shay, NRF President and CEO "Without action, we face the potential of losing the faith Americans have in their leaders, and the pursuant decrease in consumer confidence."

Retail industry professionals still have reason to remain positive. Should the problem finish quickly, the NRF believes that improvements in the U.S. housing market and consumer desire for more expensive items may bolster sales come November. In addition to the more modest overall growth, online purchases may rise a more dramatic 13 to 15 percent. Because of the added strain on retail ecommerce software, merchants should ensure that their technology is up to the task. 

This entry was posted by Retail Pro on Tuesday, October 8th, 2013 at 4:36 am .