Retail Group Sees Increasing Sales This Year

Washington, DC, Jan. 26, 2010--Retailers should see a 2.5% increase in sales this year, according to trade group National Retail Federation.

Key economic indicators such as the housing market and employment are beginning to show positive signs, which will lift consumer confidence throughout the year, the Washington-based trade group said Tuesday.

Other factors including strong exports, a turnaround in the inventory cycle, and federal government spending also should aid retailers' results, NRF said.

"While we still expect shoppers to continue to be frugal with their discretionary spending, retailers will soon be able to reap the benefits of leaner, smarter inventories and a year and a half of pent-up consumer demand," said NRF's Chief Economist Rosalind Wells.