Distribution Channels

Retail Sales figures can tell a lot… if looked at from different perspectives. From our research, one could conclude from the total retail sales reports that growth is weaker than prior to 2008. But, is it? No, not when looking at them as a spend per household plus private business establishment and adjusting for inflation. Real $ Sales ‘per capita’ have climbed above the pre-recession period. It’s all about perspective.

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Implication

Retail Sales have been growing at a slower average rate than before the 2008 collapse.

Implication

Households are growing slightly slower than before 2008.

Implication

Private Business Establishments also have been growing at a slower rate since 2008

Implication

Those spending at retail come from both HH’s and business establishments. As such, they should be combined to see how the population are spending at retail.

Implication

First, adjusting for inflation, the story changes. The past 9 years have been growing on a slightly faster average rate than the prior 9 years.

Implication

Calculating a spend per HH + Establishment demonstrates that retail sales are doing well on a per HH + Establishment basis. 2017 spend reached the highest in the 2000’s and the average growth is far better than the 2000 – 2008 period.

It’s about perspective.

2018-08-29T18:27:10+00:00