Consumer Resilience Overcomes Retail Sales Dip

Marcus & Millichap reports retail sales climbed 2.2 percent in 2015, despite slightly lower sales in December, and weather-related challenges. The gains illustrate the continued resilience of U.S. consumers.

Online retail sales reportedly increased 7.1 percent last year — including a 20-percent rise over the holiday shopping season, surpassing results posted in other categories. Since 2010, online sales have expanded more than 50 percent, far outpacing the 23 percent bump in store-based sales over the same period.

Challenges remain, including recent large-scale store closures announced by Macy’s and Walmart. Marcus & Millichap notes overall retail vacancy was expected to fall to 6.1 percent in 2015, as a result of minimal completions and growing space demand. Tighter vacancy supported rent growth in the low two percent range.