Levin Management Corporation’s (LMC) 15th annual Retail Outlook Sentiment Survey indicates that retail store managers are optimistic about business prospects for 2026, though they remain cautious regarding consumer confidence, inflation, and labor costs. According to the survey, 68.6% of respondents expect their locations to perform much better or somewhat better in the coming year.
The survey highlights that the economy and consumer confidence are viewed as the most significant factors likely to impact business in 2026, cited by 71.3% of participants. Inflation and rising costs follow closely at 69.4%, with labor availability and labor costs noted by 36.1%.
“2026 is shaping up as a year where execution will matter more than ever,” said Matthew K. Harding, chief executive officer at Levin Management Corporation. “With consumers focused on value, retailers are doubling down on fundamentals — strong service, tight inventory discipline and technology that improves efficiency in the store.”
The results show an increased focus on technology-driven adaptations at the store level. About 40.9% of respondents identified investments in areas such as artificial intelligence and automation as top priorities for improving operational efficiency.
Regarding holiday performance from the previous season, 71.9% reported that sales were either unchanged or higher compared to prior years, while 17.4% experienced lower sales. Additionally, 65.3% stated that holiday sales met or exceeded expectations.
For full-year results in 2025, approximately two-thirds reported stable or improved sales and customer traffic compared to 2024.
In terms of pricing strategies over the past year, nearly a quarter did not raise prices despite inflation pressures; most increases remained below ten percent. Looking ahead to 2026, just over one-third anticipate further price hikes but a significant portion remains uncertain about future adjustments due to ongoing cost concerns.
Hiring activity continues among retailers: more than 42% indicated they are currently hiring staff members. While major reinvestment plans remain limited across stores, some businesses plan selective expansion with around one-quarter considering opening new locations.
Operational changes have been common recently or are planned soon by roughly 43%. Technology investments led these efforts (40.9%), followed by initiatives focused on customer experience and training (34.8%) as well as loyalty programs and promotions (34.8%).
“Our survey shows technology has quickly become the most common adaptation retailers are prioritizing, from AI and automation to payments and other tools that help teams work faster and serve customers better,” said Melissa Sievwright, vice president of marketing and corporate communications at Levin Management Corporation. “Retailers are looking for practical technology that strengthens day-to-day execution and supports customer service at the store level.”
When asked about brick-and-mortar advantages over online retailing, nearly four out of ten managers pointed to in-person customer service as their primary strength.
Overall findings suggest steady demand entering next year but greater price sensitivity among consumers is expected; this places added importance on operational discipline along with enhanced service levels and technological improvements within stores.
LMC plans its next Retail Sentiment Survey for June with a focus on midyear performance metrics and evolving technology trends.
The annual survey gathers feedback from retail managers operating within LMC-managed properties covering topics such as sales trends, expectations for upcoming periods, pricing decisions, staffing plans, operational shifts, and perceived benefits of physical retail environments.
