Despite a rough January, merchants can look forward to retail industry growth for the coming year. According to the National Retail Federation (NRF) 2014 economic forecast, retail sales are expected to increase by 4.1 percent in 2014. This is up from the organization's 2013 projection, which anticipated a 3.7 percent growth. Improvements in the economy and job market are contributing to this trend.

"Measured improvements in economic growth combined with positive expectations for continued consumer spending will put the retail industry in a relatively good place in 2014," said NRF President and CEO Matthew Shay.

However, the NRF noted that merchants still face a number of challenges, including debt ceiling debates, healthcare expenses and the effect of weather trends. Harsh winter weather is believed to be the culprit for disappointing January sales, according to The Wall Street Journal. The news source attributed a 9.6 percent decrease in sales to the "polar vortex" weather, which kept many shoppers indoors.

At the same time, the NRF predicted a growth in ecommerce this year, and retailers can use online retail marketing strategies to help overcome Mother Nature's obstacles. For example, merchants can use retail customer intelligence to send targeted ads for items customers might need during winter storms. 

This entry was posted by Retail Pro on Tuesday, February 11th, 2014 at 3:53 am .