Despite the fact that consumer spending is expected to increase this year, retailers are having a hell of a time wanting to pay the cost of their rising rents.
In fact , according to a new report by Bisnow , 34% associated with small retail businesses were unable to make their rent within April. This number had been up 6% from February, the report says, citing survey data from Alignable.
Among reasons for not being able to meet their financial obligations, retailers noted inflation, gasoline prices, supply chain issues, labor shortages and reduced revenues.
National Retail Federation Chief Economist Jack Kleinhenz has contended that inflation is going to subside and that retailers may not have to worry about shoppers pulling back. His organization predicts “ retail sales for 2022 will certainly rise between 6% and 8% to between $4. 86T and $4. 95T”.
We will take the ‘ under’ upon that number.
Kleinhenz continued, stating that will “ underlying strength and momentum from both the consumer and business sectors probably offset a modest slowdown and should leave the economic climate bustling forward this year. ”
Meanwhile, Bisnow writes that the Bureau associated with Economic Analysis’ Personal Usage Expenditures Index, a broadly tracked measure of consumer inflation, hit 6. 6% within March.
“ How much and how fast the Fed raises rates can, of course , depend on how the economy performs in the months ahead. While policymakers would like to increase interest rates gradually, more aggressive action may be needed and appears to be the direction which will be taken, ” Kleinhenz came to the conclusion.