Store managers are heading into 2026 with measured optimism, balancing expectations for improved performance at their own stores with ongoing concerns about the economy, inflation and labor pressures, according to Levin Management Corp.’s 15th annual Retail Outlook Sentiment Survey.
As for expectations, 68.6% of respondents said they expect their own stores to perform much better or somewhat better.
Looking back to 2025, 71.9% of respondents said holiday sales were the same or higher, and 65.3% said results met or exceeded expectations. Then, 64.3% reported that total 2025 sales were the same or higher than they were in 2024 and 65.3% said traffic was higher or unchanged in the year past. Just under a quarter of respondents reported they hadn’t raised prices in response to inflation, while 38.8% said prices they charged increased by less than 10%, reflecting a trend toward modest adjustments to cost pressures rather than broad price hikes. Still, 35.5% of respondents said they anticipate raising prices in 2026, while 44.9% said they are unsure about the outlook, underscoring uncertainty about costs and consumer response.
Regarding labor, 42.6% of respondents reported they are currently hiring. Major store reinvestment plans were limited, respondents said, but some retailers continue to pursue selective growth, with about one-quarter planning to open additional locations and many still undecided, Levin maintained.
Some 43% of respondents said they have instituted changes recently or plan to do so in the near future. AI, automation and payments, at 40.9%, led the list of technology investments in the making or intended. Many retailers are planning to update customer experience and training (34.8%) and retool loyalty and promotions (34.8%) through tech investment.
When asked to choose a primary advantage brick-and-mortar retail enjoys, store managers most often selected in-person customer service and support, at 39.8%, followed by the social experience of in-person shopping, 17.6%, brand- and loyalty-building capabilities, at 15.7%, product discovery, at 13%, and the convenience of getting it now, at 9.3%.
Matthew Harding, Levin Management CEO, said, “2026 is shaping up as a year where execution will matter more than ever. With consumers focused on value, retailers are doubling down on fundamentals, strong service, tight inventory discipline and technology that improves efficiency in the store.”
