Telsey Sees Robust Retail Growth in Off-Price and In Activewear

Part 1 of 2

SAN DIEGO—Overall paltry retail sales and decelerating consumer spending are two trends that should be monitored. That was according to ICSC Western Division and Deal Making conference keynote speaker Dana Telsey.

The New York-based CNBC Contributor and CEO of Telsey Advisory Group, a leading equity research, sales and trading, consulting, and investment banking firm focused on the consumer sector, said that “We are in an industry of change…consumers are changing…the way they make purchases is changing.”

She pointed out that millennials are an important long-term contributor to consumer spending and a focus of retailers. She also pointed out that she is currently seeing a robust growth in off-price and activewear; slight improvement in specialty apparel and department stores. “Omni-channel initiatives, new technologies, and experiential retailing are key retail trends.”

Retailers that are better-positioned to outperform peers are those with an omni-channel presence, a strong understanding of millennials, and an efficient supply chain, she added.

So what is consumer spending being driven by? According to Telsey, it is by promotions; product innovation; seamless storefronts and currency trends.

But e-commerce, she says, is the invisible threat. “A new crop of high-growth retailers with disruptive online and mobile-based business models are challenging larger, established players,” she explained. “Market share that has been kept in the hands of larger retailers is quietly being donated to new-age entrants as their value propositions gain more traction with consumers.”

Check back in the next day or two for more from Telsey, about what retailers are focused on, and more on the macro picture.

Part 1 of 2

SAN DIEGO—Overall paltry retail sales and decelerating consumer spending are two trends that should be monitored. That was according to ICSC Western Division and Deal Making conference keynote speaker Dana Telsey.

The New York-based CNBC Contributor and CEO of Telsey Advisory Group, a leading equity research, sales and trading, consulting, and investment banking firm focused on the consumer sector, said that “We are in an industry of change…consumers are changing…the way they make purchases is changing.”

She pointed out that millennials are an important long-term contributor to consumer spending and a focus of retailers. She also pointed out that she is currently seeing a robust growth in off-price and activewear; slight improvement in specialty apparel and department stores. “Omni-channel initiatives, new technologies, and experiential retailing are key retail trends.”

Retailers that are better-positioned to outperform peers are those with an omni-channel presence, a strong understanding of millennials, and an efficient supply chain, she added.

So what is consumer spending being driven by? According to Telsey, it is by promotions; product innovation; seamless storefronts and currency trends.

But e-commerce, she says, is the invisible threat. “A new crop of high-growth retailers with disruptive online and mobile-based business models are challenging larger, established players,” she explained. “Market share that has been kept in the hands of larger retailers is quietly being donated to new-age entrants as their value propositions gain more traction with consumers.”

Check back in the next day or two for more from Telsey, about what retailers are focused on, and more on the macro picture.