Retail is quietly outperforming expectations, with core retail sales setting a new record in March—but investors continue to eschew the sector in favor of other, more sure bets. 

Marcus & Millichap data reveals that last month, total consumers spent $468 billion, up 6% from last year and 24% from pre-pandemic numbers. Inflation adjusted core retail sales were 1.1% from last year and a gain of 15.6% over pre-COVID numbers, and the National Retail Federation is predicting retail sales will increase by 6% to 8% this year.

"That's really healthy growth, and it's broad-based, including gains in about every retail subsector from building materials to apparel to restaurants," says John Chang, senior vice president and director of research services at the firm. "When I talk to investors most are shying away from the retail sector, and for that I blame the press. It seems like they're always down on retail, highlighting how the sector will be crushed by e-commerce in some fantastic retail apocalypse…there's always some churn in the retail sector, but overall the retail industry continues to reinvent itself and perform."