The Year in Preview

Retailing: The retail sales pace will slow during the first half of 1999 as consumers reduce high levels of personal debt. Sales growth in Southern California will be slightly stronger, and sellers of home furnishings will fare best as rising real estate prices and low interest rates prompt refinancing and a home improvement boom. Regulators will allow Kroger and Fred Meyer to merge, and other supermarket companies will seek merger partners to create chains with similar national reach.