Retail Sales Growth Rates Reflect Changes in Competition and Consumer Preferences
By Dr. Joe Webb
Published: May 26, 2016
Department stores are still having problems. Their year/year growth rate has been negative for more than a decade. E-commerce sales are maintaining a 15% growth rate. At that rate, they double every five years. The last peak in growth for retail sales excluding motor vehicles was in late 2011, and that rate, unadjusted for inflation, has slowed to the 2% range. Retail sales are a function of household income, and their costs, and they remain sluggish as median household income has still not reached the level it was at the beginning of the recession. In the meantime, shopping malls, the department stores that anchor them, and mall owners are having problems. A Weekly Standard article about Amazon has some insights into it. The downslide of brick and mortar retail stores and malls can create collection problems for printers who sell to them, but there are changes underway that might hold some opportunities for those printers who seek them. Developers are using mall complexes for new buildings that include office space and even hospitals and hockey rinks. There are also new efforts to treat the shopping experience not just as a matter of location, but holistically to include all digital touchpoints inside and outside the mall. How will much of this be communicated? It will often require signage, working closely with store owners and local mall management. Those printers, attuned to the nature of communications logistics and data management, can find opportunities there.