A new report out from the National Retail Federation (NRF) predicts that 2017 is going to be another great year for online sales. They expect that non-store purchases will grow by approximately 8-12% over the course of 2017, which is a very respectable number. It is especially strong compared to the growth rate they predict for overall retail sales, which is just 3.7-4.2%.
The chief economist, Jack Kleinhenz, commented on the report saying, “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. Retailers sell to consumers however they want to buy, whether it’s in-store, online or mobile.”
He is simply explaining that as retailers are filling catching up with the digital revolution and not fighting against it, more of their sales are moving online. This will help to continue to grow the amount of online sales throughout the year. What it may mean for the future of the physical stores will remain to be seen.
Matthew Shay, the president of NRF, said “With jobs and income growing and debt relatively low, the fundamentals are in place and the consumer is in the driver’s seat. But this year is unlike any other – while consumers have strength they haven’t had in the past, they will remain hesitant to spend until they have more certainty about policy changes on taxes, trade and other issues being debated in Congress.”