Report Sees Modest Holiday

NEW YORK-A new report on this year’s holiday shopping season by Cowen and Co. forecasts “a modest holiday season, with a 3% decline in overall planned spending compared to last year.” The investment banking and research firm also expects “a heavily promotional holiday season compared to last year.”

The Cowen report, its annual online survey of consumers regarding their holiday spending plans, points out that retailers like Wal-Mart have already set the tone by slashing prices ahead of the traditional start of the holiday. Its report details a mixed bag for retailers, with some set to gain this year and others simply holding on or losing ground slightly as consumer spending shifts to and from different categories.

Among the factors underlying the forecast is the impact of higher gasoline prices, with 71% of those who responded to a Cowen survey indicating that they expect to spend less this year because of higher energy prices. The housing market is also a concern among consumers.