NRF Lowers Retail Sales Forecast; Expects Stronger H2

(IDEX Online News) – The National Retail Federation (NRF) has lowered its retail sales forecast for 2014 because of slow growth recorded during the first six months of the year. Despite the revision, the retail trade organizations said sales are expected to grow significantly faster over the next five months.

In January, the NRF forecast that retail sales would grow 4.1 percent in 2014 over 2013; the latest forecast revises that figure downwards to 3.6 percent.

“No retailer was immune to the doldrums witnessed during the first quarter, and as a result, the year’s growth trajectory was impacted,” said NRF president and CEO Matthew Shay. “That said, there is plenty of evidence that the second half of the year will be better for the industry as consumers begin to feel more optimistic about their spending decisions.”

NRF calculated that sales grew 2.9 percent during the first half of the year and are expected to grow at least 3.9 percent during the second half.

“A second look at our forecast shifted our expectations slightly, but it’s important to note that the outlook is positive. Sales are growing and we expect them to continue at a moderate pace,” said NRF chief economist Jack Kleinhenz.

NRF is the world’s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the United States and more than 45 countries.