2022 was choppy going for U.S. economy, yet the retail sector proved itself seaworthy. Given the rough waters, many have asked “how the retail sector has been able to withstand, survive, and even thrive following so many hits to the core fundamentals of the economy, and, moreover, will the retail sector continue its success in 2023?” writes Cox Castle & Nicholson partner Scott L. Grossfeld. 

Although no one can answer the question completely, Grossfeld notes, “over the years, we have found that retail has been flexible, able to adapt, and change and morph in ways to enable itself to succeed.”  

Currently, retail continues to benefit from the after-effects of the pandemic, observes Grossfeld. “Consumers are still tired of being couped up at home, there is a general pent-up desire to get out and spend, and a need for social interaction,” he writes in a new Cox Castle report, Despite Strong Headwinds, Retail Continues To Adapt And Survive. “Shopping addresses and satisfies those issues.” 

Additionally, Grossfeld cites at least three major trends in retail that are helping retail manage changes in the overall economy.  Namely, “Traditional retail media or digitally born retailers are emerging as physical stores, tenant mixes and diversity are changing, and new store formats are taking form.” 

For the complete report, click here.