Discounts and sales events have remained a significant sales driver, as consumers emerge from a more than two-year stretch of high inflation. It’s unclear how much those deals will cut into Target’s and other retailers’ profit margins, and whether sales will keep improving if promotions fade away.

Retail sales gained 0.4% in December from November, slightly below projections for a 0.5% increase, according to FactSet.

Sales for the 2024 holiday shopping season turned out to be robust and better than expected, as easing inflation on merchandise drove shoppers to buy, according to the nation’s largest retail trade group.