Holiday Sales Expected to Drop 5% in 2008

New York City Amid a struggling economy and the decrease in consumer confidence, sales for the upcoming 2008 holiday-spending season is expected to drop 5%, according to a report released by Brand Keys.

The number of consumers who plan to spend less this upcoming holiday season is on the rise, the report said. In addition, the number of consumers planning to spend the same as last year is also growing. At the same time, consumers who said they plan to spend more this year decreased by 75% over last year.

The average customer is expected to spend about $775, about 5% less than last year, according to the report.

“More shoppers, with thinner wallets and seeking to avoid the crowds, lines at check-out, and the stress associated with bricks-and-mortar shopping, say they'll go online to shop this holiday season," said Brand Keys president Robert Passikoff.