Sep 23, 2008 6:03 pm US/Eastern
Retailers Can Expect A 'Ho Hum' Shopping Season
Forecast Calls For Weakest Gain In 6 Years
MIAMI (CBS4) ―
A leading retail group expects this holiday season to be the worst in years. This holiday season the reality of providing is dampening the spirit of giving.
"They need to eat first and the gifts will have to wait," said Maria Gold to CBS4's Jorge Estevez outside a strip mall in Doral. Gold has her own method of saving this season.
"There are like fourteen or fifteen of us, so, how do you buy Christmas presents for everybody? You just buy for the children," said Gold.
Maria isn't alone.
The economy is threatening an American tradition; holiday shopping. New numbers just released by the National Retail Federation show Americans will spend 470.4 billion dollars this holiday season, that's a 2.2 percent increase from last year, the lowest increase since 2002.
"A growth of 2.2 percent is just not going to be enough to lift the economy and trigger it and get it moving again," said Professor Jerry Haar, Associate Dean of International Affairs at FIU.
Haar says South Florida may feel it the worst since we have one of the highest unemployment rates in the country and a service economy based heavily on retail success.
"A slump in buying on the part of consumers here which means that their neighbors here who are working in the retail sector will suffer as well," said Haar.
With fewer jobs in South Florida comes less spending. It becomes a vicious cycle. Even people who have recently gotten a job are watching their wallets.
"I am just going to buy one present for whole families instead of each member," said Cristina Suarez.
But in the end, similar to the holiday spirit, people want to believe.
"You have to stay positive and stay confident, that is the American way," said Jose Baez.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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