US Holiday Retail Sales Forecasts Hit $1 Trillion Mark, Jewelry Faces Pressure

Forecasts from several firms indicate US holiday retail sales are expected to reach $1.013 trillion in November and December, representing a 4.2% year-on-year increase. The National Retail Federation previously predicted sales would exceed the $1 trillion mark for the first time. However, a survey by McKinsey & Company found that 43% of US consumers expected to spend less on jewelry over the next three months.

While overall retail sales are projected to grow, the reports highlight that consumers are entering the holiday season amid persistent inflation, higher gasoline prices, elevated interest rates, and household debt, according to the National Retail Federation. Mastercard also noted that over 35% of in-store spending in jewelry, handbags, department stores, and cosmetics occurred in the final week before Christmas.