What Retail Sales Trends Mean for CRE
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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