Here’s why retail is making a comeback

The strong economy is giving the sector a boost

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
Leslie Alexander with 1117 Main Road in Riverhead (top) and 2045 Sound Avenue in Mattituck (Getty, Compass)
Leslie Alexander lists pair of North Fork properties with development rights
Leslie Alexander lists pair of North Fork properties with development rights
(Photo Illustration by The Real Deal with Getty Images)
Office occupancy stalls after Labor Day push
Office occupancy stalls after Labor Day push
A photo illustration of 1776 Nostrand Avenue (Getty Images, Google Maps)
Flatbush landlord sentenced in deadly space heater fire
Flatbush landlord sentenced in deadly space heater fire
Tankhouse’s Sam Alison-Mayne with 452 Union Street (Facades Plus, Google Maps, Getty)
Multifamily deals dominate strong week of NYC i-sales
Multifamily deals dominate strong week of NYC i-sales
Steve Roth and renderings of 260 11th Avenue (Getty, Profile New York)
Vornado lays out vision for Otis Elevator Building complex
Vornado lays out vision for Otis Elevator Building complex
From left: Arch Companies' Jeff Simpson and Hello Living's Eli Karp along with a rendering of 1580 Nostrand Avenue (Getty Images, Arch Companies, Hello Living)
Eli Karp’s Hello Living says goodbye to Flatbush project
Eli Karp’s Hello Living says goodbye to Flatbush project
A photo illustration of Daniel Brodsky and 75 West End Avenue (Getty Images, Google Maps)
Brodsky brings challenge to NYC Airbnb law
Brodsky brings challenge to NYC Airbnb law
(Illustration by The Real Deal with Getty)
How illegal Airbnbs slip through the cracks
How illegal Airbnbs slip through the cracks
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...