This month's retail headlines cover record-breaking Prime Day sales, consumer's spending cuts, mall revivals, and more.
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Brick and Mortar
Retail sales unchanged in June from May, underscoring shoppers’ resilience
Retail sales remained unchanged in June from May, despite economic forecasts predicting a pullback, highlighting consumer resilience amid an uncertain economy. Excluding gas prices and auto sales, retail sales rose 0.8%, with strong performances in online sales, clothing, and building materials, while lower-income consumers increasingly relied on credit cards to maintain spending.
One-third of consumers cut spending in Q2: report
A Jungle Scout report found that 84% of consumers say inflation has affected their spending, with one-third decreasing their overall spending in Q2 2024. Despite overall caution, Gen Z increased their spending the most, and social media emerged as a significant platform for product searches and purchases.
J.C. Penney launches summer sales that overlap with Prime Day and beyond
J.C. Penney is launching summer sales events, including "Black Friday in July" and a "Mystery Sale," overlapping with Prime Day, featuring thousands of items priced under $20 and special deals for members of its revamped loyalty program, which includes unique services like photo sessions and discounted haircuts for children and students. The department store aims to attract back-to-school shoppers with a wide range of discounts on popular brands and its own labels, emphasizing affordability and additional perks for loyal customers.
Only the Fed Can Rekindle America’s Love for Cars
New-vehicle sales in the U.S. have been stagnant due to high prices, high interest rates, and a cyberattack affecting dealer IT systems, pushing less affluent consumers towards the secondhand market. While the market remains resilient, it is unlikely to see significant growth without interest rate cuts from the Federal Reserve.
Closures
A Full List of Rite Aid Store Closures By State
Big Lots to close 35 to 40 stores this year amid 'doubt' the company can survive
Walmart July Mass Store Closure Update – Store Closures Announced
Ecommerce
US online retail sales to reach $1.2 trillion this year: report
U.S. online retail sales are expected to increase by 9.8% to $1.2 trillion in 2024, capturing 22.7% of the overall retail market share, according to FTI Consulting. This growth reflects the maturing of e-commerce, which continues to gain market share and drive innovation in the retail industry.
Amazon Prime Day 2024 sales hit record $14.2 billion
Amazon's Prime Day event in 2024 saw record-breaking sales, with U.S. consumers spending $14.2 billion, an 11% increase from last year's $12.7 billion, according to Adobe Analytics. Notably, electronics, furniture, and back-to-school shopping drove significant growth, while the use of "buy now pay later" plans contributed to $1.08 billion in sales.
Walmart builds wide lead among US retail media networks, report finds
Walmart leads U.S. retail media networks with 11 billion impressions in Q1, significantly ahead of competitors like Target, which generated fewer than 7 billion impressions. Specialized retailers like Chewy, The Home Depot, and Sephora also showed strong performance, each exceeding 1 billion impressions, indicating the growing scale of niche retail media networks.
What We’re Reading
Developers turn to apartments to help revive aging malls, often replacing former department stores
As department stores close, many mall owners are converting former retail spaces into apartments, with nearly 54% of mall redevelopments incorporating residences in 2022. This trend aims to revitalize malls by creating a new customer base and addressing housing shortages, with notable projects including Simon's $1.5 billion investment in mixed-use developments and PRCP's transformation of Chicago's Yorktown Center.
