Slow Housing Recovery Impacts Retail Sector

Single-family housing’s slow recovery is resulting in weak retail demand, according to Cassidy Turley’s U.S. Retail Report. But several economic indicators, including the stock market and exports, are nearing pre-recession levels. Retailers hope these prove to be leading indicators for sustained retail growth.

Other trends noted in the report include:

• Retail vacancy should return to its historical average by mid-2013, assuming the current 220.5 million square feet of vacant retail space is absorbed at its historical average rate.


• Class A space will lead the way, with B and C space lagging by one to two years.


• Since retail demand and unemployment have a strong correlation, regions with above-average unemployment lag behind national averages.


• April’s 0.2 percent increase in consumer spending was disappointing, even though it represented a 7.6 percent increase from April 2010.


• Value-minded consumers are spurring the growth of dollar stores. Over the next two years, major dollar store chains will open an estimated 1,800 new stores.