Citi Increases Holiday Sales Expectations

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Photo: rondauphin via Flickr

Citi is increasing expectations for holiday same-store sales at broadline and drug retailers. Analyst Deborah Weinswig now expects growth of 4 to 5%, up from 3 to 4%.¬†Weinswig says strong September sales bode well for the November and December period. Over the last 10 years, correlation between back-to-school and holiday sales have hit 78.4%, a strong indicator that retailers like Macy’s and Target will beat again as they did this past month.

Lower commodity prices, better fashion assortment and the maturity of e-commerce will be a boon to retailers worried of macroeconomic headwinds. In her note, she writes “The Broadlines retailers have been experiencing outsized online sales growth YTD, driven by investments over the last several years to enhance website functionality, navigation, and assortments.”

One thing that will also benefit the industry is a lack of excitement in the electronic sphere. Attention has shifted to apparel going into the Christmas season. This juxtaposes last year’s ramp up of the iPad, which gained robust momentum during the 2010 holidays.¬†

Take a look at same-store sales this September here >

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