Survey: 2026 finds retailers optimistic, but concerned about inflation and consumer confidence
Two-thirds of retail and restaurant store managers in the Northeast reported that their 2025 sales were the same or higher than in 2024 and that traffic was higher or unchanged.
Additionally, seven-in-10 of them expected that their register rings would be either much higher or somewhat better in 2026, though nearly the same percentage said they would be keeping close eyes on inflation, rising costs and consumer confidence.
Those were the highlights of Levin Management Corporation’s (LMC) annual survey of its tenants in New York, Connecticut, New Jersey, Pennsylvania and Virginia — states where LMC owns and/or operates 125 properties that total more than 16 million square feet of space.
“2026 is shaping up as a year where execution will matter more than ever,” said Levin’s CEO Matthew K. Harding. “With consumers focused on value, retailers are doubling down on fundamentals — strong service, tight inventory discipline and technology that improves efficiency in the store.”
More than 70% of survey respondents said their holiday sales were higher in 2025, while just 17% said their tallies dipped below 2024 sales.
A quarter of those surveyed reported no price increases in response to inflation, while nearly 40% said prices rose just under 10% — reflecting a trend toward modest adjustments rather than broad price hikes.
Looking ahead, some 35% said they anticipate raising prices further in 2026, while 45% said they are not sure — underscoring uncertainty around costs and consumer response.
Nearly 43% saying they are currently hiring. While major store reinvestment plans were limited, some retailers are still pursuing selective growth, with about one-quarter planning to open additional locations and many still undecided.
When asked to choose the single primary advantage of brick-and-mortar retail, store managers most often selected in-person customer service and support (40%), followed by the social experience of in-person shopping (18%), brand-and-loyalty-building capabilities (16%), product discovery (13%) and the convenience of getting it now (9%).
More than four-in-10 reported that they have made adaptations recently or plan to do so in the near future. Among those, technology investments such as AI, automation and payments led the list (41%).
“Retailers are looking for practical technology that strengthens day-to-day execution and supports customer service at the store level,” said Melissa Sievwright, LMC’s VP of marketing and corporate communications.
