Sales gains at U.S. retailers including Target Corp. and Federated Department Stores Inc. are expected to slow to 4.5 percent this holiday season because of higher gasoline prices and sluggish wages.
Total U.S. sales will increase to $219.9 billion in November and December from a year earlier, according to the National Retail Federation, a Washington-based trade group that represents 2,000 merchants and suppliers. Sales climbed 5.1 percent in 2003, the group said in a statement.
Sales gains at upscale retailers should remain strong while growth at discounters such as Wal-Mart Stores Inc. may be tepid because their customers are hurt more by high gas prices, investors say. Retailers are counting on holiday shopping, from which they get almost a quarter of revenue, after same-store sales grew an average of 2.4 percent from June through August.
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