Retail sales could see solid growth in the year ahead with e-commerce activity again seen as the key driver, the National Retail Federation said in its annual economic forecast.
The NRF sees sales in 2017 rising between 3.7% and 4.2%, excluding sales of automobiles, gasoline stations and restaurants. Online and other non-store/online sales, which are included in the overall number, are expected to increase between 8% and 12%.
“The economy is on firm ground as we head into 2017 and is expected to build on the momentum we saw late last year,” said Matthew Shay, NRF president and CEO. “With jobs and income growing and debt relatively low, the fundamentals are in place and the consumer is in the driver’s seat.”
Shay cautioned that while many consumers are in a stronger position financially, they would remain hesitant to spend until they have more certainty about policy changes on taxes, trade and other issues being debated in Congress. “Lawmakers should take note and stand firm against any policies, rules or regulations that would increase the cost of everyday goods for American consumers,” he said.
Jack Kleinhenz, NRF’s chief economist, added that online sales would continue to expand in 2017 and provide growth for the retail industry.
“But it is important to realize that virtually every major retailer sells online and many of those sales will be made by discount stores, department stores and other traditional retailers,” he said. “Retailers sell to consumers however they want to buy, whether it’s in-store, online or mobile.”
