While retail sales in the U.S. this holiday season are "on the road to recovery," it’s still shaping up as the second-worst holiday season in 42 years. That’s according to the Retail Forward holiday forecast, released this week.
Holiday sales are seen as totally flat from last year, with 0.0 percent growth, while sales last year dropped 4.5 percent from 2007.
The consulting and market research firm also predicted that electronics will suffer the biggest drop of all from last year, largely because Circuit City has closed since last year’s holiday season.
“Softer August retail sales declines are signs of an emerging retail recovery that will be driven by growing confidence among households,” Frank Badillo, Senior Economist for Retail Forward, said as part of the announcement. “This is positive news as we move into the critical holiday season, but the economic environment will remain difficult," he added.