LONDON, February 26, 2013 /PRNewswire/ --
The National Retail Federation, the retail industry's biggest trade group, expects a pullback in retail sales growth in 2013 due to lower consumer spending following the expiration of 2% payroll tax cut on January 1, 2013. However, department stores such as The TJX Companies Inc. (NYSE: TJX) and Saks Inc. (NYSE: SKS) will be hoping that the ongoing improvement in the labor and housing markets will boost consumer confidence and result in higher consumer spending. StockCall professionals have completed their technical analysis on TJX Companies and Saks; and these free reports are accessible by registering at
Retail Sales to See a Pullback in 2013
Late last month, the National Retail Federation said that it expects U.S. retail sales, excluding gasoline stations, automobiles and restaurants, to rise 3.4% in 2013. The forecast is below the preliminary 4.2% growth rate for 2012. In 2011, retail sales rose 5.8%.
The industry body's forecast assumes that the expiration of 2% payroll tax cut earlier in the year as part of the fiscal cliff deal will lead to lower consumer spending. Matthew Shay, CEO of the National Retail Federation, noted that debates about the health of the economy and fiscal policy are having a real impact on household budgets and consumer spending.
The trade group, however, expects retail sales to improve in the second half of the year.
Improving Labor and Housing Market to Drive Retail Sales Growth
Retailers will be hoping that the ongoing improvement in the labor and housing market will boost consumer confidence and spending this year. Although unemployment rate is still hovering near 8%, recent data from the labor market has been encouraging. If the labor market continues to improve, one can expect consumer spending to remain robust. In addition, the housing market is continuing its strong recovery.
January Retail Sales Rise 0.1%
The impact of the expiration of 2% payroll tax cut was felt in the month of January as retail sales rose just 0.1%, according to a report from the Commerce Department released recently.
The TJX Companies Inc. Results Eyed
Investors are eyeing The TJX Companies Inc.'s fourth quarter financial results, which will be released on tomorrow, Wednesday, February 27th, 2013. Sign up for the free technical research on The TJX Companies Inc. at
Earlier this month, the company had raised its fourth quarter and full-year earnings outlook after posting strong sales for the month of January. The company now expects fourth quarter earnings to be around $0.80 per share to $0.81 per share. For the full year, earnings are expected to be around $2.53 per share to $2.54 per share.
Carol Meyrowitz, CEO of The TJX Companies Inc., said that customer traffic drove January's comparable store sales increases across the board, as consumers continue to be drawn to the company's great values on great fashions and brands.
Saks Inc. To Report Q4 Results Today
Saks Inc., meanwhile, will report its fourth quarter financial results before market open today. For the third quarter, the company had reported a 3% increase in total sales to $713.2 million. Be sure to read our latest technical research on Saks Inc. by registering at
Stephen Sadove, CEO of Saks Inc., had said at the time of the release of the third quarter results that as the overall macroeconomic environment remains very uncertain, the company continues to approach the future cautiously but very strategically.
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