Holiday Retail Sales Growth To Slow

Holiday sales growth will be the slowest it has been in five years, according to TNS Retail Forward. The company forecasted that fourth-quarter growth in 2007 would slow to 3.3% from 4.6% in 2006.

The company projected that online sales would be the bright spot for retailing, bringing in nearly $42 billion in the fourth quarter of 2007, up from $35 billion in the fourth quarter of 2006.

"The credit crunch will lead to a consumer crunch by the holidays," said Frank Badillo, senior economist at TNS Retail Forward, in a statement. "This will extend the weakness in retail sales beyond home improvement stores to other retail channels."

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