Several weeks ago, retail analysts were predicting holiday spending increases by as much as 5 percent. But with the onslaught of media attention surrounding the potential for next January’s fiscal cliff, I think some of those initial predictions may have been too optimistic. Instead, I believe we could see spending increase in the 2 to 4 percent range. In my latest Retail Rap column, I discuss how the attention surrounding the fiscal cliff could impact holiday spending, as well as expansion and repositioning plans for retailers in 2013.
Though it may have seemed like it over the past few months, the election isn’t the only issue weighing on the minds of holiday shoppers. With the economic recovery just “limping” along, the recent damage and disruption from Hurricane Sandy, and the onslaught of media stories surrounding the potential for next January’s so-called “fiscal cliff,” it’s hard right now for anyone to see the potential for happy holidays. And, although most people probably don’t even understand what the “fiscal cliff” might mean for their finances and families, the weight of repetitive bad news can inevitably take its toll on consumer confidence.
Check out the full article from my recurring column, Retail Rap, at Chain Store Age.