Oct 7, 2018

Holiday retail sales will be strong — just not the strongest

Photo: Hiroko Masuike via Getty Images

Consumers will deliver a robust holiday shopping season, thanks to a booming economy. But industry watchers forecast sales growth won't measure up to last year.

Why it matters: Consumer spending makes up a huge chunk of gross domestic product, and what they spend during November and December contributes to that. The holiday season can account for as much as 30% of retailers' annual sales, according to the National Retail Federation.

Last year, holiday sales topped $690 billion, a 5.3% increase from the previous year. That was the biggest year-over-year gain since 2010.

This year's estimates:

  • The National Retail Federation expects holiday sales growth to slow a bit, with an increase of 4.8% from the previous year. CEO Matthew Shay pointed to higher gas prices and tariffs as potential headwinds.
  • AlixPartners, a retail consulting firm, predicts retail sales will rise 4.1%, citing the potential for economic hiccups after the midterm elections.
  • Two other forecasts, from Deloitte and PwC, expect sales growth to hit 5%.

Correction: This item has been updated to fix the spelling of Matthew Shay's name.

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World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Japan's economy minister outlined plans on Monday to end the nationwide state of emergency as the number of new novel coronavirus cases continues to decline to less than 50 a day, per Bloomberg. Japan has reported 16,550 cases and 820 deaths.

By the numbers: Over 5.4 million people have tested positive for the virus as of Monday, and more than 2.1 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 13.7 million tests). The U.K. is reporting over 36,800 deaths from the coronavirus — the most fatalities outside the U.S.

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Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of midnight ET: 5,401,701 — Total deaths: 345,060 — Total recoveries — 2,149,407 — Map.
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  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

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U.S. coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios. This graphic includes "probable deaths" that New York City began reporting on April 14.

President Trump doubled down on his push to reopen schools, tweeting late Sunday: "Schools in our country should be opened ASAP."

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