Retail Most retail contacts report that sales continue to grow at a moderate pace in the current quarter. Areas of strength are building supplies, tourism, office and graphic reproduction supplies, and home furnishings, all of which are said to be growing at a 10 to 20 percent pace. Areas of weakness are apparel sales and discount retailing. Across the board, sales growth is said to be at or slightly above expectations, with inventories at desired levels. Employment is reported to be either increasing moderately or holding steady.
Contacts mention pockets of tightness in labor markets, most notably the faster-growing sectors.
In these submarkets, significant wage premiums are being offered to attract labor from competitors. In contrast, contacts that are mainly hiring for normal turnover report little difficulty in attracting help. Wages are generally said to be increasing at a 3 to 5 percent annual rate. Respondents indicate that most prices are holding steady because of an extremely competitive retail environment. The exception is tourism, where rates are rising to ration the short supply of hotel rooms.