CREJ - Retail Properties Quarterly - February 2018
A few themes run throughout this issue of Retail Properties Quarterly and, for the most part, these observations are positive for the retail market. For example, I learned in an article authored by experts from HFF, on Page 16, that for every company closing one store, 2.7 companies are opening one. Also, in 2017, there was a net gain of more than 4,000 stores opening, the article states. Further, holiday sales were up locally and nationally. According to a market update on Page 6 from Marcus & Millichap, 95 percent of all holiday shoppers bought some merchandise from brick-and-mortar stores, and spent a total average of $842 on gifts this season. But that’s not all – these shoppers also splurged on nongift-related items during the same period, spending an average additional $261 on entertainment, personal services and food-related purchases. While these statistics bode well, one negative statistic also caught my attention while researching this issue. The retail industry lost the most jobs from November 2016 to November 2017 in the 15 industries the U.S. Bureau of Labor Statistics tracks. However, this statistic alone isn’t news – retail lost the most jobs the previous year as well. What is new is the gender disparity. Despite overall job loss in the retail industry, men gained retail jobs, according to a study by the Institute for Women’s Policy Research. Women’s share of all retail trade jobs fell from 50.4 to 49.6 percent, the study found. “We’ve seen many news reports of the decline in retail jobs, but few have noted that the picture in retail is much different for women and men,” said a statement from Heidi Hartmann, IWPR president. “The majority of the losses in retail comes from general merchandising stores, where men have actually gained jobs.” She goes on to acknowledge that there is very little known about what’s driving this trend – for example, could it be women are exiting retail jobs to enter higher paying industries or could it be because men sell durables and families are finally catching up on delayed purchases on cars, furniture and household appliances? If this is the reason, Hartmann wonders if durables are the future of general merchandise stores. I’m curious to follow employment numbers in the next few months as retailers realign after the holiday season. In addition to watching the gender component, I’ll also be keeping my eye on how the minimum wage increase continues to impact retailers. As of January, the new minimum wage in Colorado is $10.20. Michelle Z. Askeland maskeland@crej.com 303-623-1148, Ext. 104