NRF Sees Sales Decline for 2009, With Second Half Growth

Washington D.C. As consumers continue to shift their spending habits, the National Retail Federation predicted Tuesday that retail industry sales will decrease 0.5% from last year.

“Most of the consumer behavior we saw in 2008 will continue well into this year,” said Rosalind Wells, NRF chief economist. “Shoppers will be seeking value and trading down to discount and off-price retailers in order to stretch their purchasing power.”

The first half of the year will see a continuation of the weakness that was felt in most of 2008. This will contribute to a 2.5% decline in sales for the first half of 2009.

The good news is the third quarter will experience some improvement, with sales expected to decrease 1.1%. In the fourth quarter, sales are expected to improve 3.6%, due to easy comparisons to last year’s dismal holiday season, as well as a strengthening economy.