Summary
We continued our run with the bulls: the stock market surpassed
all-time highs and posted strong gains over the course of the year.
The continuation of the bull market bode well for subsectors
—the Consumer Discretionary sector outpaced the S&P 500
by nearly 2%. Despite strong performance overall, retail stocks
generally struggled as investors carefully watched the industry
transformation underway.
In the United States, retail sales grew 4.2% in 2017, backed by
strong consumer confidence and rising levels of disposable income.
While online purchases helped drive retail sales growth,
traditional retailers experienced one of the strongest holiday
seasons in years.
Retailers continue to adapt their business models in this
evolving environment. Amidst nearly 7,000 store
closures4, retailers were committed to investing in
technology, experimenting with innovative retail experiences and
fortifying their online presence.
