With low inflation, low unemployment and rising wages, the U.S. retail environment should be fertile and thriving. Consumer confidence has risen to the highest level in almost a decade. However, the retail boom everyone was expecting hasn’t arrived.
The Dodge 2017 Construction Outlook reports some weakness in the retail sector has resulted in a stalled recovery for the store and shopping center sector, according to Dodge Data & Analytics Chief Economist Robert Murray. As major retailers like Macy’s announce store closures, retail construction has suffered. In fact, store and shopping center starts were down 14% in 2016 at 97 million square feet. As online sales increase and nearly one-third of malls are reported closed or closing, more focus is being placed on the experience.