Retailers expect to significantly outperform the wider UK economy as they predict an average sales growth of 4.7% this year.
The growth will come despite a continuation of price wars, as more than a third of retailers expect to reduce prices, according to TLT’s retail growth strategies report.
Growth of 4.7% comes on the back of the continued recovery of the economy and is almost double the 2.4% growth expected for the wider economy in 2015.
Some 59% of those surveyed expect 2015 to be a year of growth and over two thirds are planning to invest more or the same amount in their businesses as they did in 2014.
TLT partner and head of retail and consumer goods Perran Jervis said: “The impressive growth rate anticipated by some retailers, and a determination to invest, shows that there is a continued confidence that the recovery is on track.
“In particular, online growth means investment in many areas not just in technology but in staffing online teams, changing use of physical stores and increasing logistics capability.”
The study, which surveyed senior managers at 100 of the top UK retailers, found 69% have identified websites and mobile apps as a key area for investment this year.
By the end of 2015 more than two-thirds of retailers plan to offer click-and-collect services.
Only 5% of respondents predicted growth within the grocery sector, while 63% believe it is likely to contract.
In contrast, 65% of retailers think beauty will grow as a sector, followed by 63% predicting growth in clothing and 52% believing homeware will increase in size.