The National Retail Federation (NRF) confirmed Friday that holiday sales for 2015 increased by three percent but are still lower than the forecasted sales increase of 3.7 percent.
A number of factors can be linked to why retailers missed out on the target sales increase, according to the retail trade association.
"Weather, inventory challenges, advances in consumer technology and the deep discounts that started earlier in the season and that have carried into January presented stiff headwinds as retailers competed with one another and their own bottom line," said Mathew Shay, chief executive of NRF, according to Reuters.
The preferences of people have also changed, as seen with the growth in restaurant and travel spending. This means that beyond the holiday season, retailers have to battle with how people are now more inclined to spend their money on experiences rather than buy something off the shelves, The Washington Post reported.
"Despite these factors, the industry rallied, consumers responded and sales still grew at a healthy rate, which is a huge testament to the resilience, knowledge and expertise of our retail leadership," Shay said, according to Business Wire. "While some will attempt to diminish this positive outcome, the fact remains that retail continues to play an important role in growing our economy. This holiday season has proven once again that the industry can quickly and successfully respond to a rapidly-changing and challenging sales environment in order to achieve continued year-over-year growth."
