Brighter Consumer Outlook Spurs Spending Boost

Follow us:
Research Brief
December 2016
RETAIL SALES
Developing Trends
Retail property operations are set to strengthen further in 2017 as net absorption outpaces development. Vacancy will fall 40 basis points to 5.2 percent at the end of 2017, the lowest level since 2000.
Growing home sales and apartment absorption pushed home furnishings and furniture sales up 4 percent over the past year. Expanding demand for housing in 2017 will further increase growth for this sector.
Amazon opened a prototype grocery store for testing near its headquarters. Branded Amazon Go, the concept centers around a no-hassle, no-checkout-line experience supported by a smartphone app. Opening to the public in 2017, the national rollout could include up to 2,000 locations.
The 2016 Holiday sales forecast updated with November data shows solid growth in the 3.6 percent range increase over 2015 and also above the 7 year average of 3.4 percent growth.
Latest Research Briefs
Fed Reserve Rate Hike12/2016

>>

U.S. Employment Market12/2016

>>

Brighter Consumer Outlook Spurs Spending Boost
The post-election bump on Wall Street has supported a rise in confidence from 87.2 in October to 93.7 for November, the third highest monthly gain since the end of the recession. Rising consumer optimism was evident in November’s 3.7 percent year-over-year growth in core retail sales, which was well above the 2.2 percent yearly average from the previous 12-month period. Retail sales growth was supported by exceptional gains in the health and personal care category, where sales vaulted 6.2 percent over the past year. Retailer Ulta Beauty has capitalized on a growing trend of providing services as well as selling products, leading the company to undertake a dramatic expansion. Plans call for doubling the store count to 2,000 locations and hiring 2,500 workers.
3.7% Core Retail SalesNovember 2016

Y-O-Y

2.4% Wage GrowthThrough 3Q 2016

Y-O-Y

* Through NovemberSources: Marcus & Millichap Research Services; U.S. Census Bureau; National Retail Federation
The Research Brief blog from Marcus & Millichap offers timely insight and expertise into the rapidly changing investment real-estate industry. The Research Brief is published by top industry professionals, showcasing time-sensitive information and valuable analysis. Add the Research Brief blog to your reading list today.
The information contained herein was obtained from sources deemed reliable. Every effort was made to obtain complete and accurate information; however, no representation, warranty or guarantee to the accuracy, express or implied, is made.