Earlier this year, based on projections from The National Retail Federation, Philadelphia area consumers were expected to spend more than $72.1 billion at retail this year, a 6.5% increase versus 2020. New data, however, indicates spending will be remarkably higher.
The NRF revised its data this month, and now expects annual growth of 10.5% to 13.5%. Based on these revisions, the Philadelphia area retail economy could now top $75.9 billion. Excellent news for Delaware Valley small business owners.
“The economy and consumer spending have proven to be much more resilient than initially forecasted,” NRF President and CEO Matthew Shay said. “The combination of vaccine distribution, fiscal stimulus, and private-sector ingenuity have put millions of Americans back to work. While there are downside risks related to worker shortages, an overheating economy, tax increases and over-regulation, overall households are healthier, and consumers are demonstrating their ability and willingness to spend. The pandemic was a reminder how essential small, mid-size and large retailers are to the everyday lives of Americans in communities nationwide.”
To put in historical context for Philadelphia small business owners, Mr. Klenhenz noted that he anticipates the fastest growth the U.S. has experienced since 1984. The reopening of the economy has accelerated much faster than most had believed possible a year ago.
To capture the largest possible share of spending growth, local retailers will need to advertise. By the most crucial marketing metrics, the best best way to reach area consumers is by advertising on Philadelphia radio.