Retailers expected to bag 60 billion in sales in the next week

Retailers shouldn't write off the 2007 holiday shopping season just yet. Consumers are set to bag 60 billion worth of merchandise over the next seven days, experts say. Much of that spending -- nearly half -- is expected to come when consumers cash in gift cards. Michael McNamara, vice president of research and analysis for MasterCard Advisors, expects that retailers will ring up as much as 17% of their December sales in the last week of the month.

That translates to about 60 billion in holiday-related purchases or roughly 12.6% of 474.5 billion that the National Retail Federation expects consumers will spend on holiday-related shopping.
MasterCard Advisors did not break out how much of the 60 billion will be spent using gift cards. A survey conducted by the retail federation in November estimated that gift card-related sales this holiday season could reach 26.3 billion.

Marshal Cohen, chief retail analyst with NPD Group, estimates that more than 60% of holiday shoppers bought gift cards.

Gift cards are especially critical this year because the retail federation expects holiday sales in November and December to grow 4% over last year - or their slowest pace of growth since 2002.