Boston Retail Market Report

Retail activity strong through midyear, though headwinds arise. One of the nation's most highly-educated metros, Boston's concentration of high-income knowledge-based labor has helped insulate the local retail sector from inflationary headwinds. Consumer spending through the second quarter was up 9.5 percent over the previous year, exceeding the annual rate of inflation for this period. However, while local firms were expanding at a rapid clip in early 2022, hiring velocity has slowed in recent months as worsening economic outlooks and higher operating costs have caused some firms to re-evaluate personnel needs. Still, the market boasts a median income more than 50 percent above the national equivalent, propping up spending as many consumers ease discretionary purchases.