Retail Sales Stronger in January

Great piece today in Bloomberg on retail sales increasing strongly in January. While retail means many things to different people - big box, neighborhood centers, grocery anchored centers, necessity centers, etc. - there is no question that the combination of lower gas prices, along with several years of below average construction is good news for existing retailers and landlords.

Prudent Growth Partners firmly believes that acquiring reasonably priced neighborhood centers, with tenants ranging from medical clinics and neighborhood restaurants to pharmacies and fitness centers, is a great long term portfolio strategy.

From the article:

Greater job security, improving wage growth and falling gasoline prices may be persuading more consumers to loosen their purse strings after a fourth-quarter slowdown. A pickup in household purchases, which account for the lion’s share of the economy, would help the U.S. stave off the negative effects of a strengthening dollar, sluggish foreign demand and tumultuous financial markets.

“Consumer fundamentals still look very strong,” said Bricklin Dwyer, an economist at BNP Paribas in New York. “We had really strong real incomes at the end of last year, and that’s going to feed through to consumption.”

Demand held up even after a winter storm moved through the Mid-Atlantic and Northeast regions late last month. Snow blanketed cities from Baltimore to New York and caused power outages, more than 13,000 flight cancellations and severe coastal flooding, according to the National Oceanic and Atmospheric Administration.

Continued strength in the labor market is keeping Americans spending. Employers added 151,000 to payrolls in January after expanding headcounts by 262,000 the month before. Wage growth also showed signs of life. Average hourly earnings climbed 2.5 percent in the 12 months ended January after a 2.7 percent gain in December that was the most since 2009.

Complete Article here:

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Prudent Growth Partners, LLC  (2020)    1829 E. Franklin St, Suite 800-F, Chapel Hill, NC 27514  (919) 590-4119