WHAT NEW RETAIL SALES DATA SIGNALS FOR CRE INVESTORS IN 2024
U.S. Consumers Increase Real Retail Buying By 3% Annually
- December inflation-adjusted core retail sales climbed above $520B for the first time on record
- Positive movement in many of the retail subcategories is reversing yearlong downward spending trends
Consumer Spending Drives Retail Space Demand
- Heightened spending supports retailers, with restaurants, bars, and personal health retailers recording the sharpest gains to close ‘23
- Strong spending has helped keep retail vacancy near record lows entering the new year
Online Retail Continues To Grow Its Market Share
- Online spending also expanded over 6% annually, boosting industrial space demand entering 2024
- Since the pandemic, the non-store segment of retail has grown 61.7%, expanding E-commerce from 15% to 21% of core sales
*Retail sales through December
Core retail sales excludes auto and gasoline sales
Adjusted for inflation using Core PCE, November 2023 dollars
Sources: Marcus & Millichap Research Services, U.S. Census Bureau
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