Tuesday, January 19, 1999
Electronics, home items tops for '99
NEW YORK — Retail spending growth in 1999 is not expected to match 1998's increase, but it should be a respectable year, with growing demand for electronics and items for the home.
“Last year was an extraordinary one,” Rosalind Wells, chief economist for the National Retail Federation (NRF), told reporters at the NRF's 88th Annual Convention and Expo on Monday. “Spending will not match last year's pace.”
Purchases of general merchandise, apparel and furniture rose 6.8 percent in 1998, Ms. Wells said. In 1999, such spending is expected to rise about 4.8 percent.
Continued consumer confidence, growth in income and employment and innovative products will help drive sales.
Among the predicted spending trends will be a call for home-related merchandise and electronics. Ms. Wells also said apparel sales are expected to grow, with an emphasis on casual wear. She also thinks discounters will benefit from shopper demand for value.
What it all boils down to is retailers probably should not expect next Christmas to be better than last. Ms. Wells said sales of general merchandise, apparel and furniture last season represented the strongest holiday increase in years.
—Lisa Biank Fasig
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