**Holiday Sales Expected to Climb Amid Economic Uncertainties**

Despite the challenges posed by a fractious presidential election, economic uncertainties, and persistent inflation, holiday sales are projected to rise this year, according to retail executives. The National Retail Federation (NRF) has forecasted an increase in holiday sales by 2.5 to 3.5 percent compared to last year, potentially reaching up to $989 billion in total. This anticipated rise, though slower than last year's growth of 3.8 percent, aligns with the pre-pandemic growth rates of approximately 3.6 percent annually.

Matthew Shay, Chief Executive of the NRF, noted that the current economic landscape is reminiscent of pre-Covid times, with spending patterns and growth rates stabilizing. This year's holiday season, as defined by the NRF, encompasses sales from November 1 to December 31, excluding purchases from auto dealers, gasoline stations, and restaurants.

E-commerce continues to be a significant driver of retail growth. The NRF estimates that online sales will increase by 8 to 9 percent, amounting to roughly $295 billion to $298 billion. This growth rate is expected to surpass that of total retail sales.

While higher prices remain a concern for shoppers, the strong labor market and wage growth surpassing inflation have enabled consumers to maintain their spending power. However, there has been a noticeable shift in consumer priorities, with more spending on essential items such as groceries rather than discretionary expenditures and dining out.

Shay emphasized that consumers are likely to be more price-conscious and practical during this holiday season, a critical period for retailers. He highlighted that concerns about interest rates and lingering inflation in certain categories are prevalent among shoppers. As a result, a highly promotional retail environment is anticipated to attract price-sensitive consumers.