Retail Group Expects Even Better Sales in 2015

The National Retail Federation expects consumers to spend more in 2015, predicting retail sales will climb 4.1 percent over last year.

Sales grew by 3.5 percent in 2014, the Washington-based industry trade group said.

The federation’s forecast excludes automobile, gasoline and restaurant sales.

“Retailers are optimistic about the potential that exists for healthy growth in retail sales and consumer engagement in 2015,” said federation President and CEO Matthew Shay. “While our outlook for the year ahead is positive, we aren’t quite out of the woods; in order to see continued momentum, we need a commitment from our leaders in Washington to pass legislation that will encourage investment, create jobs and set us on the path towards sustained, long-term economic growth.”

The news comes as the Commerce Department reported that retail sales fell 0.8 percent in January, pinched by plunging sales at gas stations and auto dealers. Stripped of the auto-related figures, retail sales climbed 0.2 percent.

Wage growth and lower unemployment are expected to drive the gains retailers will see this year, according to federation economist Jack Kleinhenz. But, he cautioned, retailers should keep an eye on “wild cards” that could affect growth, including the global economy, energy prices and inflation.

This article appeared in print in the February 13th, 2015 edition of Hamodia.