Industry data and what they mean for your specialty retail business.
Ecommerce, which generated $231 billion in sales for U.S. retailers last year, is expected to increase 13% to $262 billion this year. Ecommerce already accounts for about 8% of total retail sales in the U.S., and is expected to reach $370 billion in sales by 2017. By that time, it is expected to account for a full tenth of all retail sales in the U.S.
Source: Forrester Research, Mashable
Mom and Pop Stores
Consumers spend a little more than $30 billion on Mother’s and Father’s Day gifts. “Party” holidays such as Halloween, Super Bowl and St. Patrick’s Day are also fast gaining market share.
Source: National Retail Federation
POS Powers On
Much has been made about the replacement of traditional point-of-sale terminal devices by mobile phones and tablets, but the overall penetration of POS devices continued to expand 3.9% in North America and 4.6% around the globe in 2012 according to research firm IHL Group. Growth is expected to continue at 3.6% worldwide for 2013.
Source: IHL Group
Rents Ramping Up?
The National Association of Realtors forecasts that vacancy rates at U.S. retail properties will ease from 10.7 percent in the first quarter of this year to 10.4 percent in next year’s comparable quarter. The association is forecasting that retail rents will rise by about 1.5 percent this year, on average, and by 2.1 percent next year. “Overall commercial real estate leasing activity continued to grow in most markets during the closing months of 2012, which is modestly lowering vacancy rates in all of the commercial sectors early this year,” said Lawrence Yun, the association’s chief economist and senior vice president of research, in a press release.
Source: National Association of Realtors; ICSC
It’s Getting Personal
Specialty retail sales have consistently had some top category contenders with apparel being in the lead over the last four years. What is significant however is that “Personal Care and Health” is emerging as a strong competitor for the second spot. In 2012, this category enjoyed 10.1% of overall specialty retail sales.
Source: Specialty Retail Pulse, Q4 2012