Impact of Shutdown Reflected in 2Q Retail Fundamentals; Some Bright Spots Come into Focus
Stimulus and fewer operating restrictions propelled retail metrics during the past two months. At the end of the second quarter, retail sales had nearly returned to pre-health crisis levels as the central bank and federal government flooded the economy with liquidity. Nonetheless, property operations are weakening and the damage of a economic shutdown may not be reflected in vacancy for several quarters.
Key Features Include:
- Grocery-anchored centers performing better than the market as a whole
- Malls look for a reset as thousands of stores permanently close
- Consumers increasing cart size, decreasing visits in many cases