The ultimate power of the American consumer
You cannot bet against the American consumer and expect to win.
Despite the headlines shouting about bankruptcies, inflation, and global instability, the truth on the ground tells a different story. Retail sales are up. Store openings are up. Rent collections are ahead of pace. And it all comes down to one thing: the enduring strength of the American shopper.
For years, we’ve watched real incomes at different levels grow faster than inflation. Debt levels remain low, and despite the headlines in media, sentiment on the street is stronger than expected. According to the U.S. Census Bureau, March retail sales were up nearly 5% year-over-year, and the behavior we’re seeing in our own portfolio—renewals, rent growth, long-term commitments—is proof positive that retail is healthy. Consumers are evolving by shopping smarter at off-price and value-oriented stores, and often ahead of the curve.
At DLC, we say it plainly: Retail is powered by people. And that means where the consumer goes, so does the retailer. That is how retail is winning.
The American consumer isn’t just holding up our economy. Without U.S. demand, economies like China, Vietnam, and parts of Europe face serious challenges. Like Atlas, the U.S. shopper is carrying the weight of the world.
But now, we are facing misguided policies with the implementation of tariffs. They’re a direct hit. A regressive tax that punishes our growth. A consumer in China is not paying a tariff. They will be paid here, by Americans, at checkout.
The resilience of the consumer is reflected in the real estate market. In just the past week, we’ve seen early renewals, 15% rent bumps, national tenants locking in long-term extensions. One deal—a bakery in Florida—just bumped rent 15% with annual 3% escalations. Another? A high-end bike shop opted for an 8% immediate increase. These are healthy signals in a sector many wrongly wrote off years ago.
And yet, uncertainty still lingers. Retailers are watching policy decisions closely—especially as they will have to commit to goods for the holiday season. The devil’s going to be in the details.
If tariffs stick, it could be trouble for some. But others, especially those tuned into value, will thrive.
If you’re a policymaker, an investor, or a retailer—keep this in mind: don’t mess with the American consumer. They’ve proven time and again that they’ll find value, demand quality, and keep shopping through just about anything.
Our job as operators and investors is to meet them where they are. At DLC, that’s exactly what we’re doing. And if the consumer stays strong, so does retail.
Adam Ifshin is the CEO and founder of Elmsford, N.Y-based DLC Management Corp.
