Will retail sales add cheer?

National Retail Federation (NRF) posted its predictions that retail sales would increase by 4.1 percent during this holiday season to $586.1 billion. This does add some hope for a merrier Christmas this year, Diamond World noted in its Weekly E-Post.
It is noteworthy that NRF’s holiday forecast this year is higher than the 10-year average holiday sales increase of 3.5 percent. This definitely sounds encouraging, especially as the year has not really witnessed much positive activity, either in the global economic environment, or at the recently concluded Hong Kong Gem and Jewellery Fair.
The industry has maintained a moderate outlook at the season, but the NRF figures bring a ray of hope. The findings also highlights — while consumers are cautious, they will still respond to retailer promotions and discount offerings. Also, with the growth of social media, the further push to drive sales will add to the season cheer. The diamond industry is passing through reduced output by manufacturers, retailers stocking mainly for short term, and mining companies curbing production. While this is not conventionally the spirit of the season, being hopeful about a good festive season is never out of fashion.