Holiday Spending Seen Rising Modestly, ButInflation and Labor Unrest Pose Challenges for Retailers
• Retail spending over the holidays is projected to increase 1.6% compared to last year, but cost-of-living pressures continue to impact consumers • The Reserve Bank's interest rate decision in February could mark a "turning point" for consumer confidence and business outlook • Industrial action at ports is causing supply chain issues that could negatively impact retailers this year • The federal budget in May could include measures like tax cuts to encourage consumer spending • Online retail is expected to continue strong growth, taking market share from traditional brick-and-mortar stores