Consumer Spending Remains Strong Despite Rising Inflation
- October retail sales were up 16% YOY; core retail sales were up 15% YOY, and up 21% from pre-pandemic
- Even accounting for inflation, core retail sales are up nearly 11% YOY, and 16% from before the pandemic
- Elevated pandemic savings and early holiday shopping likely key factors in strong spending
Online Shopping Major Driver, But In-Store Sales Rising
- Online sales rose 10% YOY, and 40% since pre-pandemic
- Inflation-adjusted store sales are up 9% YOY & 14% pre-pandemic; August retail foot traffic just off 2019 levels
Retail Sales Support Commercial Real Estate Performance
- After initial shock, elevated retail spending is providing positive momentum for Retail sector recovery
- Online shopping and retailers’ need for additional inventories continue to support Industrial performance
Core retail sales exclude auto and gasoline sales
Sources: Marcus & Millichap Research Services, U.S. Census Bureau