What to watch in retail in 2026
Friday, February 6, 2026
Michael Brown is a highly versatile executive with extensive experience in commercial real estate acquisitions and dispositions.
As a real estate broker licensed in Florida since 2006, Michael Brown has many years of experience in sourcing and securing new sites for expanding companies in a variety of sectors including retail, restaurant, office and industrial.
Through his real estate career, Michael has handled site selections and acquisitions nationally for corporately owned (including private equity) and franchised locations. New store rollouts are one of his strengths as well as overseeing portfolio-wide lease administration. He has been responsible for target market analysis and site selections, successfully closing deals in 22 of the top 35 markets in the U.S.
Michael is a brand ambassador who has cultivated relationships nationally with property owners, brokers and retailers to get the inside scoop on commercial sites. He has made deals and presentations at ICSC conferences in Atlanta, Boston, Charlotte, Chicago, Las Vegas, New York, Orlando, South Florida, Tampa and Washington, DC. He has existing relationships nationally and a wealth of experience with many major property owners, from REITS to regional and local landlords.
Michael came to Florida originally in 1988 to expand the advertising department at Alamo Rent A Car's then corporate headquarters in Fort Lauderdale, FL. He was responsible for ensuring brand consistency and point-of-purchase execution at all of Alamo's rental facilities which grew by over 100 locations in the U.S. and U.K. and $1 Billion in revenue during his tenure there.
Brown is a seasoned professional with marketing and real estate experience in a variety of industries including Finance, Healthcare, Insurance, Non-profits, Real Estate Development, Restaurant, Retail, Travel and more.
Retail industry trends for 2026 include continued AI adoption for product research and customer service, value-seeking consumers driving traffic to discount retailers, and shopping malls experiencing a rebound with renewed investment in mixed-use projects. Mall foot traffic increased in 2025, with indoor malls seeing a 1.8% rise in visits and visit durations up 3.3% compared to the first half of 2024, as traditional retail shopping centers transform into destinations for entertainment and experiences. Industry executives remain optimistic, with 96% expecting revenue growth and 81% anticipating margin expansion in 2026, despite challenges including weakened consumer buying power, high interest rates, and competition from mass merchants and value retailers. Specialty retailers face particular vulnerability in 2026 as high interest rates, shifts toward online shopping, and aggressive competition from mass merchants are predicted to push overleveraged companies into bankruptcy.
U.S. retail sales are projected to grow 3.5% year-over-year in 2026 to reach $5.3 trillion, slightly down from estimated 4.0% growth in 2025, according to Bain & Company's 2026 Global Retail Sales Outlook. Volume growth will remain modest with inflation projected between 2.6% and 3.0%, as mounting consumer strain and declining confidence affect spending amid economic uncertainty, rising unemployment, and slowing labor supply growth. Bain's Consumer Health Index found that sentiment among higher-income U.S. households, who account for more than half of retail spending, declined in January 2026. The report notes that shoppers increasingly gravitating toward lower-priced and private label goods could create a "flight to value" that tempers nominal sales growth, though reduced taxes, declining fuel prices, and potential interest rate cuts could bolster consumer sentiment and spending power.
Inflation is forecast to rise to 2.7% in 2026 as businesses pass more tariff costs to consumers, up from approximately 2.6% in 2025, with consumption growth expected to ease to 1.9% as households work to rebuild savings rates. The Trump tariffs represent the largest U.S. tax increase as a percentage of GDP since 1993, amounting to an average household tax increase of $1,500 in 2026, with the weighted average applied tariff rate on all imports rising to 15.8%. Goldman Sachs economists estimate that as of August, U.S. businesses were absorbing 51% of tariff costs while American consumers shouldered 37% of the burden, though consumers are projected to absorb 55% by the end of 2025. Manufacturers have expressed that tariffs are hurting consumer demand, pushing up prices, and complicating business planning, with some firms shifting focus from efficiency-improving capital investments to mitigating tariff costs.