Here’s why retail is making a comeback

The strong economy is giving the sector a boost

TRD NATIONAL /
Aug.August 23, 2018 11:00 AM

(Credit: iStock)

The retail sector may be bouncing back.

In the face of challenges, companies like Walmart, Target, Nordstrom and Best Buy have expanded their services. And it appears to be paying off: Walmart reported its best quarterly sales gain in a decade, while Target saw the biggest jump in 13 years, according to Bloomberg.

“The American retail sector is enjoying a renaissance,” Neil Saunders, managing director at GlobalData Retail, said in a note. “Sentiment is upbeat and spending fairly carefree.”

Though retailers like Toys “R” us and Sears have struggled, the overall macro environment is strong. Consumer confidence is at a 17-year high while unemployment is near record lows — encouraging shoppers to spend, the report said.

Nordstrom and Kohls also fared well, with results surpassing analysts’ estimates. The strong numbers are being driven by both online sales and stores will be experimenting with new services. Walmart’s Jet.com, for example, launched a text-based shopping concierge service for New Yorkers.

But there are other challenges, too. Retailers have been ramping up inventory for the holidays and to avoid the potential effect of tariffs. But if they bet wrong, they’ll be stuck with products they can’t sell. [Bloomberg] — Meenal Vamburkar


Related Articles

arrow_forward_ios
Clockwise from top left: 312 West 34th Street, 61 North 9th Street, 639 Classon Avenue, and One Fulton Square (Credit: Google Maps)

These were the top 10 NYC retail leases in July

When it comes to retail, “real estate in New York is fundamentally broken”

An example of roll-off waste management (Credit: YouTube, iStock)

Big building owners prevent city from dumping container-pickup in trash-collection reform

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

For mall owners like Simon, Brookfield and Vornado, Forever 21 bankruptcy signals more trouble ahead

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

As House begins impeachment inquiry, here’s what we know about Trump’s Ukraine-real estate ties

Embattled Prodigy Network CEO Rodrigo Niño to step down

arrow_forward_ios