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.

Americans stepped up their spending at retail stores and restaurants last month in a clear sign that consumers are still able and willing to shop.