Holiday retail sales are expected to increase a moderate 2.3% this year to $447.1 billion, which would be a marked improvement from last year's 0.4% uptick and 2008's 3.9% holiday sales decline, according to the National Retail Federation (NRF).

"While many consumers will be wishing for apparel and electronics this holiday season, retailers are hoping the holidays bring sustainable economic growth," said NRF President and CEO Matthew Shay. "Though the retail industry is on stronger footing than last year, companies are closely watching key economic indicators like employment and consumer confidence before getting too optimistic that the recession is behind them."

As in previous years, retailers are expected to focus on supply chain efficiencies and inventory control this holiday season to limit excess merchandise and unplanned markdowns. Companies are also expected to utilize new channels-including mobile-to drive sales and provide added 24/7 service to customers.

"While consumers have shown they are once again willing to spend on what's important to them, they will still be very conscientious about price," said NRF Chief Economist Jack Kleinhenz. "Retailers are expected to compensate for this fundamental shift in shopper mentality by offering significant promotions throughout the holiday season and emphasizing value throughout their marketing efforts."