• Weekly Retail Update: December 19, 2016

  • December 19, 2016
Weekly Retail Update

Retail Industry Expected to Stay Steady in 2017 

According to the Moody’s 2017 Outlook, the retail industry will remain steady in 2017. They expect operating income to grow between 4 and 5 percent and sales to grow between 3 to 4 percent. The apparel sector expects to have a 6 to 8 percent growth in sales. But certain retail sectors are expected to perform better due to economic factors. “Dollar stores will be among the top-performers in 2017, as cash-strapped consumers look to save money on multiple fronts,” said Mickey Chadha, a Moody’s VP – Senior Credit Officer. “Home improvement stores such as Home Depot and Lowe’s will benefit from the continuing robust recovery of the housing market.” (Moody’s)

Cyber Monday May Be a Thing of the Past

The adoption of technology among shoppers continues to change the retail industry and experts expect the increase in online shopping may also be the death of Cyber Monday as a shopping “holiday.” Due to ongoing online sales among retailers, shoppers no longer need to wait until Cyber Monday to score big savings. As online shopping continues to grow on the days around Cyber Monday, expected growth for Cyber Monday sales looks dismal and means the day could become irrelevant. (Forbes)

Few Retailers are Omnichannel Leaders 

According to L2’s Omnichannel Retail 2016 report, only 6 percent of retailers rate as leaders in omnichannel. “Since its inception, digital has accelerated opportunities for always-on interaction and sales channels, but it’s taken a while for the retail industry (via infrastructure and technology) and consumers (via behavior and devices) to realize omnichannel’s potential,” said Evan Neufeld, VP of intelligence for L2. “Although consumer behavior is catching up, for merchants, successful omnichannel is still the exception, not the rule.” (RetailDIVE)

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About Holly Pels

Holly Pels is the Content Strategy Manager at RICS. When she isn't planning out the awesome content you see on the RICS site, you can find her playing soccer, baking, or drinking champagne.