US retail sales are expected to reach $7.334 trillion this year, a 3.3% year-over-year growth.
Despite the increase, analysts believe that the rate of growth will slow down significantly compared to previous years.
This week we dive into the latest predictions for Q2 and beyond.
THIS WEEK’S HIGHLIGHTS
- A mall less future: Will “Zombie Malls” ever return?
A slow roll: Breaking down retail’s ‘new normal of slower growth’
Q4 Benchmark Report: Click HERE to see how your store compares to the industry average.
FOOT TRAFFIC TRENDS
Industry insights so you can convert your foot traffic into more sales.
Breaking down retail’s ‘new normal of slower growth’
US retail sales are expected to reach $7.334 trillion this year, reflecting a 3.3% year-over-year growth. However, Zak Stambor, a growth analyst at Business Insider, anticipates a new normal of slower growth.
Although inflation growth is slowing down month over month, it remains high compared to the previous year, with a 5% increase in March 2022 as reported by CNBC.
In addition to inflation, OPEC+ recently announced a cut in oil output, which could lead to higher gas prices and potentially impact consumer spending.
Looking ahead, retail sales growth is expected to range between 3.3% and 3.5% annually until 2027, representing a significant decline from last year’s growth of 8.1% and 17.9% in 2021.
Malls gain momentum
Back in the 1980s, there were about 2,500 malls nationwide. Today, only around 700 malls are still operating. Analysts predict that only about 150 will survive over the next ten years.
Despite the fact that there were 1,954 store closings in malls this year, there have been 4,432 new store openings by retailers in the U.S. This has resulted in a net addition of 2,478 stores so far this year, even with the closures.
In 2021, the retail industry had a net addition of 68 stores, indicating a significant improvement in the current year. This positive development suggests that malls in the United States are gradually regaining their appeal to consumers, and retailers are showing renewed confidence in physical storefronts.