Retail overall has performed fairly well to start the year. In the first half, monthly sales were up 3.7%, while core retail rose 3.9% annually despite slightly higher inflation, according to Colliers’ retail foot traffic and sales analysis for June. There was modest volume growth of 0.7%.
“The impact of pull-forward purchases continued to fade,” the report noted, referring to purchases made earlier than planned as the result of specific promotions, discounts, or changes in market conditions. “Many consumers have already made big-ticket buys. Still, resilient spending and a ‘buy while you can’ mindset supported sales.”
However, the results were far from uniform for different product categories, and economic pressures are expected to mount in the second half.
For example, apparel sales rose 2.4% in June, buoyed by summer styles and heavy discounting; store visits were essentially flat, rising by just 0.58% year-over-year. Electronics also saw modest sales gains of 1.8%, while traffic climbed only 0.39%.
In contrast, although furniture and home furnishings sales rose 4.3%, furniture visits decreased by 0.54%. The drop in remodeling activity led to a 2.01% dip in foot traffic and a reduction in dwell times in home improvement stores, where sales increased by only 0.2%.
Department stores and theaters also performed poorly. “Department store sales dropped 4.5%, mirroring a 1.23% drop in visits, driven by store closures and lagging consumer relevance. Theaters and music venues, a standout in previous months, saw foot traffic drop 11.92% in June,” the report stated, even though high dwell times (138+ minutes) suggest strong interest.
Other retail sectors that saw an increase in average visits per chain included discount and dollar stores (up 2.88%), fitness (up 8.68%), groceries (up 1.15%), and medical centers and services (up 0.61%).
Sectors where the average visits per chain slipped included attractions (down 6.92%), banks and financial services (down 3.32%), beauty and spa (down 1.24%), car washes (down 1.38%), drugstores and pharmacies (down 3.10%), fast food and quick-service restaurants (down 0.65%), gas stations and convenience stores (down 2.97%), gym (down 0.35%), hobbies, gifts and crafts (down 15.21%), hospitals and urgent care (down 2.29%), pet stores and services (down 1.52%), sporting goods (down 4.90%), restaurants (down 1.46%) and superstores (down 2.58%).
The list of sectors that saw fewer visits in June suggests that many consumers may be cutting back on non-essential items or turning to online sources when they are ready to make a purchase.
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