Retail Sales Increasing

As the holidays approach us, many retailers are anticipating that consumers will be buying much more this year compared the the previous years. According the Bloomberg article, sales for U.S. retailers climbed in October even with unemployment near 10 percent. Purchases rose 1.2 percent, exceeding what forecasters had predicted. They believe because of the stock gains and growing employment, households have been able to repair their finances which is why we are seeing this increase in consumer spending. Still retailers are being cautious, such stores like J.C. Penney and Wal-Mart are still focusing on promoting good sales for the holidays to get consumers into stores. Some companies are stocking up ahead of time in anticipation for better sales.

This article was very uplifting for me to read. As a merchandising management major and a pursuer of becoming a buyer for a large retail store, it is very important that the economy continue to flow normally and have normal consumer spending in order for me to have a job when i graduate. I am hoping for this holiday season that consumers are willing to get out there and purchase items to boost the economy. My only concern and question is that, will retailers build up to much expectation for consumer spending this holiday and end up over compensating for this? Even though we are seeing an increase in spending the economy is still recovering and i think retailers should still play it safe.

- S. Monson