We all know the narrative: inflation is up, borrowing costs are up, wages are up, and unemployment is low. So what does all this mean for the retail and restaurant sectors of our economy and state? Deloitte surveyed retailers a few weeks ago to get their read on how they believe the last few weeks of the year will play out.

According to Steve Chambliss, senior general manager of the Christiana Mall and a member of our Delaware Retail Council (DRC): "Consistent with national trends, Christiana Mall is having a very successful holiday shopping season. With many additional store and restaurant options this year we are poised to have a very good 2022 with high traffic volume, appropriate inventory levels, and store staffing."

Best Buy, another DRC member, similarly reported last month they expect national success this holiday season. "The holiday shopping season has begun, and now, more than ever, our customers are looking to bring joy back into their celebrations," said Best Buy CEO Corie Barry. "We have strategically and effectively managed our inventory flow based on a shopping pattern that we believe looks more similar to historical holiday periods, with customer shopping activity concentrated on Black Friday week, Cyber Monday and the two weeks leading up to December 25."

This is also the time when people may be dining out or attending company sponsored holiday events at local restaurants. Carrie Leishman, president and CEO of the Delaware Restaurant Association, reports that "consumer spending remains strong—however while total dollars spent have increased, much of that growth is due to rising menu prices. No other business sector feels the pressure of price fluctuations and inflation because restaurants operate on razor thin margins. Labor is recovering slowly with 84% of jobs now filled which still lags pre-pandemic employment figures."

Taken together, retail and restaurant employers make up two of the largest employing sectors of the Delaware economy. Employees in these sectors also learn valuable, life-long soft skill lessons, that benefit them for the remainder of their careers and are highly-valued by other employers.

This week in economic news begins today with factory orders data from October. On Wednesday, unit labor costs for the third quarter and consumer credit numbers from October are released. Thursday brings us both initial and continuing jobless claims. The week concludes on Friday with the University of Michigan’s consumer sentiment index and five-year inflation expectations for December.

Notable earnings calls this week include Stitch Fix, AutoZone, Dave & Buster’s, and Toll Brothers on Tuesday. The Wednesday spotlight is Campbell Soup, along with GameStop, Lovesac, and United Natural Foods. On Thursday, we will hear from Broadcom, Chewy, Costco Wholesale, DocuSign, lululemon athletica, and National Beverage. Cracker Barrel, Genesco and Oracle close out the week on Friday.

Take a trip to Washington DC tomorrow for the 12th Annual Taste of Delaware! In honor of Delaware Day, this event celebrates the traditions that made Delaware the first to ratify the United States Constitution. Co-hosted by US Senator Chris Coons, enjoy Delaware’s finest food and beverage options from over 20 unique culinary vendors.

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