Retailers' Holiday Hinges on Discounts

Forecasters expect a better holiday season for U.S. retailers, but say the price will be more discounts to get consumers shopping.

The National Retail Federation expects holiday sales to rise 2.3% over last year to $447.1 billion, the biggest increase in three years, in part because of more aggressive pricing strategies. The tone was set by the discount-driven back-to-school shopping season, which wrapped up in September with strong sales of children's and teen clothing, according to MasterCard Inc.'s SpendingPulse unit that tracks payment by cash, check and credit card.