Dive Brief:
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Retail sales will increase 4.1% during the winter holidays thanks to the improving economy, according to the National Retail Federation.
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That’s an increase to $616.9 billion compared to last year, which saw just a 3.1% increase from the year before, according to the NRF.
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But consumers will likely continue to be keen on getting deals, according to the NRF and others.
Dive Insight:
The economy has been steadily improving, but consumer confidence has not been so steady in the past year. Economists say that this is because wages are not included in the economy’s strengthening fundamentals. And that means retailers will continue to have to work to pull in sales.
“Until we see a broad-based rise in real income, we’ll be in the same bloodbath as we were the last few holiday seasons,” AlixPartners managing director Joel Bines told Fortune. “I tell my retail clients to be prepared for a very promotional environment this holiday season—it will be about market share more than profit.”
