Retail Sales
December 20, 2021 | Marcus & Millichap
Retail sales continue to float well-above pre-pandemic levels. Consumers acted on holiday shopping plans earlier than normal, resulting in a more moderate improvement in retail spending last month than is typical for this time of year. Core retail sales ticked up 0.2 percent in November, driving the year-over-year gain to an impressive 16.5 percent. Gains in core sales were most pronounced at food and beverage stores, sporting goods, building material retailers and restaurants and bars. In further evidence that consumers are getting out and about, spending at gas stations jumped 1.7 percent last month.
Traditional retailers benefit from the return of shoppers. Over the past year, spending at store-based retailers has climbed 13.5 percent as foot traffic climbed across nearly all major sectors. Shopping centers and apparel locations recorded the largest increase in traffic from November of 2020 to last month, rising 36 percent and 30 percent respectively. The increase supported a decline in retail vacancy in the second and third quarters, landing at 5.3 percent in September. Marketed rent has also climbed for four consecutive quarters.
