US retail sales expected to grow 4%-6% this year: Association

By Ovunc Kutlu

ISTANBUL (AA) – Us retail sales are expected to grow between 4% to 6% in 2023, the National Retail Federation (NRF) said Wednesday.

The projection is above the pre-coronavirus pandemic average annual growth rate of 3.6% and the group said it projects retail sales to reach between $5.13 trillion and $5.23 trillion this year.

If realized, the figure would represent a 7% annual growth from $4.9 trillion in 2022, it added.

"In just the last three years, the retail industry has experienced growth that would normally take almost a decade by pre-pandemic standards,” NRF President and CEO Matthew Shay said in a statement. "While we expect growth to moderate in the year ahead, it will remain positive as retail sales stabilize to more historical levels."

Non-store and online sales, which are included in the total figure, are expected to grow between 10% and 12% year-on-year to reach between $1.41 - $1.43 trillion.

The NRF said it projects full-year GDP growth in the US to be around 1%, due to a slower economic pace.

"Inflation is on the way down but will remain between 3% and 3.5% for all goods and services for the year," it said.

NRF Chief Economist Jack Kleinhenz said although it is too early to know the full effects of the turmoil in the US banking industry, consumer spending is looking "quite good" for the first quarter.

"While we expect consumers to maintain spending, a softer and likely uneven pace is projected for the balance of the year," he said.

The retail industry is the largest private sector employer in the US, contributing $3.9 trillion to annual GDP and supporting one in four American jobs, or 52 million, according to the NRF.