The retail landscape has been undergoing a fundamental change with technology playing a major role and the focus shifting to online shopping. This shift in buying pattern has compelled retailers to come up with innovative ways to market their products. Retailers who have responded quickly to it by staying ahead technologically stand in good stead. Be it department stores, discount retailers, supermarket chains or grocery players, all are in the race of survival of the fittest.

A Look at Economic Backdrop

Americans are way more confident now, brushing aside recent hiccups like the U.S.-China trade concerns, higher gasoline prices and tightening of monetary policy.

Thanks to a robust job market as evident from the fall in the number of people claiming unemployment benefits and jobless rate hovering at an 18-year low. This along with tax reform and sound economic fundamentals are likely to boost consumer confidence, which rose close to 18-year high in May. We expect this positive sentiment to translate into higher consumer spending — one of the pivotal factors driving the economy. Per industry experts, second-quarter GDP rate likely to come ahead of 4%.

Notably, U.S. retail and food services sales in May advanced 0.8% to $502 billion, following an upwardly revised reading of 0.4% gain in April, per the Commerce Department. Meanwhile, retail sales improved 5.9% from May 2017. Moreover, National Retail Federation’s projection of an uptick in U.S. retail sales of 3.8-4.4% this year raises optimism.

How is the Retail-Discount Industry Placed?

Pick up in retail sales is welcome news for retailers, whose fortunes depend upon consumers’ willingness to spend. Certainly, this Zacks Retail-Discount Industry has borne the brunt of heightened online competition. Nevertheless, retailers are fast adopting the omnichannel mantra to provide a seamless shopping experience, whether online or in-stores. However, can technology alone help retailers survive Amazon’s (AMZN) growing dominance in the ultra-competitive retail environment?