Deloitte & Touche USA Forecasts 7 Percent Increase in 2006 Holiday Spending

NEW YORK, Sept. 28 /PRNewswire/ -- Americans are expected to continue to open their wallets this holiday season, according to Deloitte & Touche USA LLP, despite some uncertainty about the economy.

As a result, Deloitte's Consumer Business practice expects that holiday sales, excluding autos and gasoline, will increase 7 percent during the November-to-January period, less than last year's exceptional 7.8 percent increase, but still above the past decade's average growth rate.

Deloitte's 21st Annual Holiday Survey of retail spending and trends -- including total planned spending, rankings of categories, "must have" gifts, an update on gift cards, and much more -- will be issued in early November.

"Back-to-school spending came in fairly strong and Halloween spending is expected to be up -- and we believe these will be bellwethers for holiday spending," said Pat Conroy, vice chairman and national managing principal of Deloitte's Consumer Business practice. "Consumers have faced some challenges this year, including energy costs, slow growth in jobs, and softness in the housing market, but they are proving to be resilient. In addition, end-of-year spending should be helped by the recent declines in gas prices and steady growth in real disposable income."

"The vast majority of retailers have already placed orders for winter holiday merchandise -- now, they must focus on maximizing sales and profits from that inventory," continued Conroy. "The most successful retailers this holiday season should offer their customers a truly differentiated brand experience, thereby encouraging more frequent visits, converting shoppers into buyers, and increasing share of wallet. We expect that a multi-channel strategy, excellent customer service, streamlined store navigation and in-stock merchandise will be key success factors."

About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms and their respective subsidiaries and affiliates. As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other's acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names "Deloitte," "Deloitte & Touche," "Deloitte Touche Tohmatsu" or other related names. Services are provided by the member firms or their subsidiaries or affiliates and not by the Deloitte Touche Tohmatsu Verein.

Deloitte & Touche USA LLP is the US member firm of Deloitte Touche Tohmatsu. In the US, services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP and their subsidiaries), and not by Deloitte & Touche USA LLP.