National Retail Federation predicts retail sales to increase 6-8% amid uncertainty

Published: Tuesday, April 19, 2022 - 3:02pm

The National Retail Federation forecasts sales will grow between 6% and 8% this year to $4.86 trillion in 2022.

Consumer demand, supply chain disruptions, and the Russian invasion of Ukraine are some of the biggest factors driving up prices.

During a March webinar hosted by the National Federation of Retailers, John Furner, Walmart  president and CEO, said his company is focused on value, “We’ll be working the next few quarters to keep costs down.”

Sharon Leite, CEO of the Vitamin Shoppe, said consumers are willing to spend, “They’re telling us that they have room to still purchase and they are, so as long as, you know, I think we all do our part to continue to do everything we can to kind of manage these inflationary pressures, I think the consumer will still be there.

Furner said the country doesn’t seem to have a demand problem, it has a supply problem and catching up has been a challenge for every industry. 

“We put so many things out, so many products out in front of the customer that many of them are great products but at times they certainly exposed our organizational structure to our team, so we’ve got a lot of work to do his year to make sure that we’re meeting demand,” he said..

“Execution couldn’t be more important right now,” said Leite. “I’m a firm believer that those companies that can execute with all the challenges that are going on right now will absolutely e win going forward.”

Some spending will shift from goods back to services, according to federation's chief economist, Jack Kleinhenz. 

He said the inflation rate, "is expected to remain elevated 2023. In addition to inflation, the forces impacting the economy include COVID-19 impacts, international tensions and policy variability."

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