January retail exceeds expectations

January is usually considered a slow month for shopping, so this year's 3.3 percent sales increase over last year comes as a pleasant surprise. Both upscale and value-priced retailers experienced gains, with analysts reporting that gift cards made a significant contribution to improvement.

With promotional products and reports of an improving economy contributing to customer optimism, the turnout beat predictions of 2.5 percent, said a Thomson Reuters tally.

Traditionally, January is devoted to merchandise clearance. The following months, say experts, are better indicators of economic progress. Some say greater challenges lie ahead as consumers worry about employment and debt.

Michael Niemira, chief economist at the International Council of Shopping Centers, was quoted in the Miami Herald as cautioning those viewing this data from letting their guards down. "It's encouraging looking at the January data, but the caveat is January and February are very low-volume months," he said.

"But it does appear that the retail recovery is being sustained," Niemira added. For businesses to take advantage of building customer optimism, it will be worthwhile to invest in customer trust, with proven tools like gift cards, company promotional products and loyalty programs.