Consumers Moved Away From Service Providers, Boosting Retail Spending
- Core retail sales reverse course in August. Shoppers remained active at the end of the summer, driven by online spending and back-to-school sales.
- Retail real estate well-positioned for recovery. Although many smaller retailers struggled through the recession, the overall market has remained resilient following the downturn.
- Recent home sales benefiting retailers. The pace of single-family housing acquisitions remained strong over the summer, which spurred purchases at furniture stores in August.
Outlook Appears Mixed
- Vaccination rates could present headwinds. Due to the rise in cases, many consumers have curtailed their visits to local retailers. Some locations have reestablished restrictions to stop the spread of the virus, including the nation’s largest cities.
- Upside potential persists. Despite the challenges presented by the rise in cases, the improving economy points to a positive retail sales market in the coming months, including a strong holiday
* August Retail Sales; Job Openings as of July
Sources: Marcus & Millichap Research Services; Bureau of Labor Statistics; CoStar Group, Inc.; U.S. Census Bureau