Expectations High for Holiday Sales

For retailers, the holiday season is make or break. Americans were expected to spend $466 billion, according to reports from the National Retail Federation. In a hopeful sign for businesses, stores saw the highest numbers of early bird shoppers in history and Americans spent a record $52 billion on Black Friday.

Clarendon business owner Sue Pyatt, who opened 30 years ago, said that after selling out of her most popular toys over Black Friday weekend, she ordered more in anticipation of the holidays.

"We didn't see fallout like some stores did in 2008, because our local area has a strong economy and most folks here have been able to keep their jobs, but we definitely noticed a drop in our business," Pyatt said. "But this November, has been really strong for us, and we're hoping to keep the momentum and wrap up the year with some of our best sales numbers."

Another reason Kinder Haus Toys seems to be successful is that Pyatt, a mother of three has built strong relationships with the surrounding community.

"We've come here for years because Sue focuses on finding toys that are either educational, or made with quality materials. I know a lot of other parents who come here for the same reason. My daughter loves playing in the store," said a Fairfax City parent shopping with her daughter.

Whether local or national, retail businesses reported feeling optimistic about holiday sales.

Nordstrom, which has a store at Pentagon City's fashion center, reported its November sales were up 5.6 percent from last year. The company's preliminary total retail sales were $910 million, an 11.6 percent increase from the $815 million shoppers spent during the same period in 2010.

Target, which has in Falls Church, also reported higher sales this year, but their sales increased by a more modest 1.8 percent. "November sales were near the low end of our expectations for the month," said Target Corporation's CEO Gregg Steinhafel in a statement. "Our view of December remains the same — we expect a competitive and promotional environment as consumers continue to focus on value."

So far, the growth seen in this holiday season's sales matches earlier predictions by the National Retail Federation, (NRF). "While businesses remain concerned over the viability of the economic recovery, there is no doubt that the retail industry is in a better position this year to handle consumer uncertainty than it was in 2008 and 2009," said NRF President and CEO Matthew Shay in a statement.

Monday: 

Tuesday: 

Tomorrow: Is the housing market improving? Some signs say so.

Friday: Wrap up the week with economic guru Stephen Fuller of George Mason University for a discussion on the future of northern Virginia's economy. As federal dollars decrease, where will the economy move?