November 22nd, 2011 
Jonathan Dionisio 
The retail industry is definitely on a roll as consumers continue to show their purchasing power, making economists optimistic about the fourth quarter. Such developments point toward retail businesses for sale as good acquisition opportunities.
The Commerce Department said that overall retail sales increased 0.5 percent from the previous month and are 7.2 percent higher than last year’s results. Excluding automotive and gasoline purchases, sales were still up 0.6 percent. This month’s results mark the fifth straight monthly gain for the retail industry.
Retail purchases for October are led by automotive purchases, as more consumers replace their old, worn out cars with new ones introduced in the market. Aside from increased spending on groceries, consumers also increased spending on sporting goods, electronics and appliances, and building materials.
"The economy seems to be in solid shape," said Alex Hoder, an economist at FTN Financial in New York. He added that although growth is not strong, it is not too bad either – and much better than many were expecting just a few months ago. Previous months had been marked by fear that the country might slip into a double dip recession.
"Consumer spending is holding up better than many people had anticipated, given a 9 percent unemployment rate and modest wage gains," said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester Pennsylvania.
With the holiday season coming up, marked by the infamous Black Friday and Cyber Monday, businesses are expecting consumers to ramp up their spending even more. “Retailers are optimistic that a combination of strong promotions and lean inventory levels will help them address consumer caution this holiday season,” said National Retail Federation President and CEO Matthew Shay. “While businesses remain concerned over the viability of the economic recovery, there is no doubt that the retail industry is in a better position this year to handle consumer uncertainty than it was in 2008 and 2009.”
Retail sales is one of the best measuring sticks of economic growth as it accounts for 70 percent of the overall economy activity in the country. As it continuously grows; it gives companies the message that the economy is indeed in full recovery mode. This should be a green light for business owners to continue thinking about possible growth opportunities through buying a business.
Interested in retail businesses for sale? Register as a buyer on Corporations4sale.com to start your search today!
Source:
http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=1206
http://www.census.gov/retail/marts/www/marts_current.pdf
http://www.nytimes.com/2011/11/16/business/economy/us-retail-sales-rose-0-5-in-october.html
http://www.reuters.com/article/2011/11/15/us-economy-retail-idUSTRE7AE11A20111115
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