Executive Summary

• The recently enacted Tax Cuts and Jobs Act provides an opportunity for established brick-and-mortar retailers in the US to invest in “better retail” and, in doing so, create a virtuous circle of higher sales and greater investment.
• Legacy retailers could choose to invest in upgrading store environments, lowering prices, hiring and training store staff, enhancing marketing, or improving omnichannel services such as mobile offerings and in-store technologies.
• The law lowers income tax rates for all but the lowest-income households, raises the amount taxpayers can earn tax-free, cuts the corporate tax rate and encourages US firms to repatriate overseas profits.