US retail grows at year-end

With Christmas and New Year just around the corner, the U.S. retail sector has shown steady growth over the critical months of November and December. The nation’s largest retail trade group has upgraded its holiday sales forecast for the last two months of the year to 3.8 percent, from a previous 2.8 percent. But while the cash registers are ringing, Americans are changing the way they shop.

Although the long-term health of the U.S. economy is still uncertain, American consumers are spending up big this holiday season. But it’s all about cautious planning. A report by the National Retail Federation shows that consumers are paying more attention to the value and quality of the products they purchase. That’s in contrast to the less discerning consumption patterns seen five years ago. Now, most shoppers are armed with carefully-constructed budgets and shopping lists.

Many consumers are keen to look for discounts and coupons to get a bargain. They are also choosing more ways to save money. The NRF report shows that about 70 percent of consumers are shopping with debit cards, cash and cheques instead of credit cards, so as to avoid over-spending.

Convenience is always a focus in retail. More and more, American shoppers are using a wide variety of gadgets - from smartphones to tablets - to do their Christmas shopping without having to leave the house. Many Business to Consumer companies like Best Buy and Amazon have launched mobile apps, for easier online shopping.

But despite signs of a pick-up in the U.S. retail sector, many retailers are cautious. An NRF survey notes many merchants remain concerned about the European debt crisis, and the sluggish U.S. recovery will continue to haunt the market until next year.