Fitch Ratings Sees FY15 Retail Sales Up 3%-4%

U.S. retail sales bolstered by a strong online sector will grow between 3 percent and 4 percent in 2015, according to an estimate Tuesday from Fitch Ratings. Increasing employment and wages along with lower gas prices will support retail growth, according to the ratings agency, which is jointly held by Hearst Corp. and Fimalac SA. But headwinds for the retail sector next year will include online competition, lower traffic, particularly for department stores, and "persistent economic pressure on lower-income consumers," Fitch said. Fitch estimates that online sales will grow in the low teens over the next several years and surpass $300 billion in 2016, while sales growth excluding online will slow to between 1.5 percent and 2 percent over the same period. While online business amounts to just 13 percent of retail sales, it now accounts for almost 50 percent of retail sales growth Fitch said. "An intense promotional environment is therefore a permanent reality as retailers fight" for market share, according to Fitch.