"American consumers may be cautious in sentiment, yet remain fundamentally strong and continue to drive U.S. economic activity."
WASHINGTON – The National Retail Federation today released its annual holiday forecast, predicting retail sales in November and December will grow between 3.7% and 4.2% over 2024. That translates to total spending between $1.01 trillion and $1.02 trillion. By comparison, last year’s holiday sales rose 4.3% over 2023 to reach $976.1 billion.
“American consumers may be cautious in sentiment, yet remain fundamentally strong and continue to drive U.S. economic activity,” NRF President and CEO Matthew Shay said. “We remain bullish about the holiday shopping season and expect that consumers will continue to seek savings in nonessential categories to be able to spend on gifts for loved ones.”
NRF Chief Economist and Executive Director of Research Mark Mathews said, “The economy has continued to show surprising resilience in a year marked by trade uncertainty and persistent inflation. As tariffs have induced an uptick in consumer prices, retailers have tried to hold the line on prices given the uncertainty about trade policies.”
Retailers are hiring additional support to meet consumer demand this holiday season. NRF expects retailers to hire between 265,000 and 365,000 seasonal workers, in line with a slower-paced labor market. By comparison, there were 442,000 seasonal hires in 2024.
Mathews added that while seasonal hiring normally supports the job market this time of year, some hiring may have been pulled forward to support retailers’ holiday buying events in October. Because of the ongoing tariff situation, retailers will be closely monitoring spending patterns and waiting to make staff additions should demand strengthen throughout the holiday season.
A notable headwind this year is the federal government shutdown, the timing of which is particularly challenging just before the holiday season. Delays in federal spending will result in a loss of private-sector income, further eroding consumer demand. While many negative economic impacts are expected to be temporary, their magnitude will escalate the longer the shutdown lasts.
NRF’s latest holiday survey conducted by Prosper Insights & Analytics, which is separate from the holiday sales forecast, found that consumers plan to spend $890.49 per person on average this year on holiday gifts, food, decorations and other seasonal items. The amount is the second highest in the survey’s 23-year history.
NRF's holiday forecast is based on economic modeling using various key economic indicators including consumer spending, disposable personal income, employment, wages, inflation and previous monthly retail sales releases. NRF’s calculation excludes automobile dealers, gasoline stations and restaurants to focus on core retail. NRF defines the holiday season as Nov. 1 through Dec. 31.
For more information, visit NRF’s Winter Holiday FAQ and Winter Holiday Headquarters.
As the leading authority and voice for the retail industry, NRF provides data on retail sales each month and also forecasts annual retail sales and spending for key periods such as the holiday season each year.
About NRF
The National Retail Federation passionately advocates for the people, brands, policies and ideas that help retail succeed. From its headquarters in Washington, D.C., NRF empowers the industry that powers the economy. Retail is the nation’s largest private-sector employer, contributing $5.3 trillion to annual GDP and supporting more than one in four U.S. jobs — 55 million working Americans. For over a century, NRF has been a voice for every retailer and every retail job, educating, inspiring and communicating the powerful impact retail has on local communities and global economies. nrf.com
