HdL HeadLines calls out retail trends affecting the economy to provide you with insight and support in your budget preparation and economic planning.
- Deals, Promotions Drive Holiday Spending
- What September Sales Mean for the Holidays
- What Simon Property Group’s Latest Move Says About the Future of Malls
- 18 Retailers at Risk of Bankruptcy
- How COVID-19 Changed Retailers Site Selection Strategies
- U.S. Auto Sales to Rise in October as Supply Chains Improve
- New Cars are Finally Back in Stock – But Americans Might Not Be Able to Afford Them
- HdL Insights
The ICSC’s recent survey is yet another indicator that consumers are worried about inflation. The survey found that 89% of respondents said inflation would affect their holiday spending. Under half (42%) of respondents planned to buy brands once they were on sale, and more than a third (37%) said they will shop at retailers that tend to sell affordable goods.
All year, inflation, plus late-pandemic changes in how people work and play, has skewed consumer behavior and discretionary spending, casting uncertainty over the holiday period. The September retail sales report offers some clues into how the season may unfold. Retail sales rose 7.1% in September in the segments followed by Retail Dive (which doesn’t include grocery, gas or restaurants). Consumers are spending and shopping early, but inflation is still squeezing their budgets. Retailers have their work cut out for them this season.
The chief executive of Simon Property Group, a mall real estate investment trust widely seen as a survivor in a turbulent sector, has consistently brushed aside any suggestion that the traditional mall business is in trouble. However, the company’s acquisition of a 50% stake in mixed-use developer Jamestown suggests that Simon may be coming to terms with the limits of having a portfolio dependent on enclosed malls, observers say.
As demand wavers and capital gets harder to find, some could face default and bankruptcy, including last year’s digital darlings. Revlon and Olympia Sports aside, bankruptcies remain slow after years of “apocalypse” and the surge in the pandemic’s first year. Yet retail is a big industry with many players, not all of them on solid footing.
In our post-COVID era, a new trend is emerging in retail that is changing how these businesses operate. Retail stores that have traditionally only been seen in shopping malls are now moving out and finding new opportunities to establish standalone storefronts, and vice versa.
U.S. auto retail sales are expected to rise in October as supply chain snags ease, making more vehicles available at dealerships amid higher demand, an industry report from consultants J.D. Power and LMC Automotive showed. An improvement in new vehicle inventories bumped up the sales activity in the United States at a time when consumers are ready to spend more to own a personal vehicle.
New cars are slowly becoming more widely available, as supply chain bottlenecks finally start to ease. But now, an increasing number of Americans might not want them or be able to afford them. With the Federal Reserve aggressively hiking interest rates to fight inflation, consumers are finding that the cost of financing a new car is suddenly a lot higher than it was even earlier this year.
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We'll be at the following upcoming events:
- MMANC Annual Conference - October 26-28, Monterey
Stop by our booth and say hello to Principals Ken Nordhoff and Susie Woodstock. HdL's Kimberly Konczak and Nikki Lettini from eCivis presented The Secret Life of Grants: Hidden Costs on October 26th.
- CMRTA Annual Conference - November 2-3, Orange
Visit HdL's booth to learn more about Tax and Fee Administration, Indirect Cost Recovery, and other services at our booth. Be sure to attend HdL's two offered sessions: Eric Myers and Connor Duckworth will be presenting Municipal Code Modernization on November 2nd. Vikki Beatley will be presenting Utility Users Tax Update on November 3rd.
- MMASC Annual Conference - November 2-4, Rancho Mirage
Swing by Booth #2 and visit Bobby Young, HdL's Director of Client Services, to learn how HdL can help your agency with revenue management. Katrina Rodriguez from HdL Coren & Cone will also be present to discuss Property Tax services.
- CSAC Annual Meeting - November 14-18, Anaheim
HdL will be at the magical Disneyland Hotel to answer any questions about Sales Tax, Property Tax, Tax and Fee Administration, Cannabis Consulting, Economic Development, and Indirect Cost Recovery. Be our guest and say hello to Bobby Young, Director of Client Services and Connor Duckworth, Client Advisor!
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