The current success is likely due to a confluence of factors. The off-price segment has traditionally maintained a minimal e-commerce presence, so a larger share of off-price shopping takes place in brick-and-mortar venues when compared to other apparel categories. Rising costs have also led many consumers to trade down or seek out affordable luxuries, while other consumers may be attracted to the “treasure hunt” aspect of off-price shopping. The slow return to office and the normalization of hybrid work may also be driving visits, as consumers refresh their office wardrobe with off-price pieces that will only be worn a couple days a week.  

Ross, Burlington, and TJX-owned Marshalls and T.J. Maxx have all expanded their store footprint recently while still seeing consistent YoY growth in visits-per-venue in H1 2023. Even Ross – which did see a dip in YoY visits-per-venue between March and May 2023 as the chain expanded more aggressively than its peers – returned to visits-per-venue growth in June and July. 

Changes brought by the pandemic and growing e-commerce have prompted many shopping center owners to convert some space into fulfillment centers, taking advantage of large parking lots and loading docks.

One in five shoppers are paying for their groceries in installments due to inflation and economic difficulties including cuts to the Supplemental Nutrition Assistance Program and the resumption of student loan payments, according to a report from PYMNTS. The report also found that while 60% of consumers in all categories have used some type of payment plan in the last year, 34% of those said they used these plans to pay for groceries.

Luxury retailers, including brands from Europe, are moving to open space in a growing number of US markets. Leasing by these brands included 650,000 square feet of new space during the past 12 months, compared with about 250,000 square feet during the previous period, according to JLL. Average lease sizes have also increased as brands have added features such as cafes and bars.

Chipotle Mexican Grill is testing a robot made with Hyphen technology that can assemble burrito bowls and salads. The technology would only be used for digital orders. Restaurants are investing heavily into automation, but it may be years before the technology pays off.

Chain Says It Will Add New Locations Beginning Next Year through fall 2025

The New York-based company — the parent of its namesake chain as well as Bloomingdale's and Blue mercury — on Tuesday said it will accelerate the expansion of its small-format store strategy, potentially tripling the total number of those pint-sized brick-and-mortar locations. Beginning next year, Macy's said it will debut up to 30 new Macy’s small-format locations across the nation. Their geographic locations and timing details will be disclosed at a later time, according to Macy's.

Despite slowing growth, Federal Reserve staff are no longer forecasting a recession due to the economy’s resilience

Initial filings for unemployment benefits totaled a seasonally adjusted 207,000 for the week ended Sept. 30, below the estimate for 210,000.

Continuing claims, which run a week behind, were little changed at 1.664 million, below the 1.68 million estimate.

The number of job openings rose by 690,000 from the previous month to 9.61 million in August 2023, well above the market consensus of 8.8 million and indicating a robust labor market despite the Fed's unprecedented monetary policy tightening measures. 

Private businesses in the US hired 89K workers in September 2023, the least since January 2021 when private employers shed jobs, and well below market forecasts of 153K. The services sector added 81K jobs. Large establishments drove the slowdown, losing 83K jobs and wiping out gains they made in August. On the other hand, small companies added 95K jobs and mid-sized ones 72K. Meanwhile, annual wage growth slowed to 5.9%, the 12th consecutive monthly decline. Pay gains also shrank for job changers to 9%.

The US core PCE price index, the Federal Reserve’s preferred gauge to measure inflation, rose by 3.9 percent annually in August 2023, the least since May 2021 and in line with market expectations. On a monthly basis, core PCE prices went up 0.1 percent, less than forecasts of 0.2 percent. When factoring in food and energy costs, the PCE price index climbed 0.4 percent from the previous month and 3.5 percent from the corresponding period in the previous year.

The yield on the 10-year US Treasury note rose above the 4.75% mark on Thursday, approaching the 16-year high of 4.8% from earlier in the week amid persistent concerns that interest rates will stay higher for longer. Unemployment claims remained near yearly lows in the final week of September, while Challenger job cuts fell sharply and the JOLTs openings beat expectations. Additionally, services and manufacturing ISM PMIs both backed optimism on economic performance. Fed policymakers Bowman and Mester flagged the possibility of another rate hike this year, while Bostic warned that the funds rate will need to remain at the terminal level for longer.

Follow us on Linkedin and Twitter