August's Retail Sales Decline Won't Impact Retail Real Estate
Though US retail sales dropped below forecasts in August, revealing a dip in consumer spending strength—the slight decline in month-to-month sales isn't likely to impact retail real estate overall.
"We look at the biggest changes, like annual trends," JLL head of retail research James Cook tells Bisnow. "Annually I think [retail sales] grew 1.9% year-to-year, and it’s completely in line with our overall view of the economy. We foresee continued overall steady growth at least for the next year, year and a half."
Consumer purchases fell 0.3% in August compared to the prior month and sales fell 0.1% (not including auto sales). Economists Bloomberg surveyed projected a 0.1% decline.
"We do expect at some point there will be a mild downturn," James says. "But, it's not going to be within the next year."
