The National Retail Federation projected retail industry sales, -excluding automobiles, gas stations, and restaurants – will increase 4.0% from 2010. The cautiously optimistic outlook comes on the heels of seven consecutive months of retail sales growth and better than expected holiday sales.
“With retailers leading the charge, the economic recovery appears to be gaining some steam,” said NRF President and CEO Matthew Shay. “The fate of the Main Street resurgence ultimately rests with policymakers on Capitol Hill. As Congress begins tackling key issues like deficit reduction and tax reform, it is critical we support policies that encourage job creation, consumption and business investment.”
According to NRF’s latest Retail Sales Outlook report, while consumers are once again showing a willingness to spend, inflation from rising commodity prices and continued high unemployment could become obstacles to economic growth.