In January, for the first time since March of last year, core retail sales fell on a monthly basis, a reflection of more consumers avoiding big-ticket, discretionary purchases. The 0.5 percent decline in core spending, however, overshadowed sales at restaurants and bars, as well as grocery stores, which each rose in both real and nominal terms last month to record levels. Collectively, the two categories accounted for 33 percent of all core retail sales, returning to the 2019 monthly average. This indicates that more consumers are prioritizing dining out and necessity items during a period of budget tightening. The segments’ share of core sales is a welcome sign for retailers that operate in these sectors, bolstering the outlook for both single-tenant net-lease and grocery-anchored properties.

Key Highlights Include:

  • Lower cost dining chains respond to consumers’ choices
  • Discount grocer patronage boosts sales; expansion through acquisitions follows

Marcus & Millichap’s Full Report:
Research Brief: Retail Sales February 2024