Quote:
Originally Posted by tabs
And the population has grown by what factor? So a relatively flat line is in actuality a decrease in per capita spending.
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During the period shown in the chart, US popln has been growing roughly 1%/yr. Immigration is down and so is birth rate. During the same period, CPI inflation has been about 1-2%. So if retail sales grow 3-4%/yr, they are barely keeping ahead of popln growth plus inflation. Which, when you think about it, isn't that surprising. The average person's income isn't growing much, and other categories of spending - new cars, travel, services, housing - are taking more "share of wallet". Online shopping is taking more share from physical retail stores. And the post-recession consumer is generally being more frugal and debt-averse than the pre-recession consumer. The retail store base grew a lot in the 2000's, responding to a consumer whose shopping was growing faster. So the country currently has an excess of retail stores, and the retail industry is being forced to actually close stores. Of course, the above applies to retailers focused on the bulk of Americans, from the well-off on down. Retailers focused on the very wealthy are in a different environment.