We are in the right place at the right time as Texas and our entire regional economy is outperforming the country while the number of new retailers going into business is at extraordinary levels.
The 2023 fall and holiday retail seasons have presented a mix of results but what’s clear is that spending by consumers has largely surprised analysts despite all the news about inflation, credit conditions and interest rates. We hear all about these economic headwinds for the retail economy but underreported are the tailwinds for independent retailers as well as for our regional economy that continues to grow.
As we start 2024, results coming in show the holiday season beat the year before nicely. Anecdotally, we have heard from retailers, brands and sales reps that independent retail performed well for the holidays which means that buyers will arrive at the January shows cautiously optimistic and with good open-to-buy. Of special note are the western U.S. retailers who are registering for our January shows and reaching out to showrooms at DMC for appointments.
But what’s perhaps most surprising is the number of new applications for retail businesses, according to the U.S. Census Bureau. Before the pandemic, the average number of applications were 40,000 to 50,000 per month. During the pandemic, applications more than doubled per month, and in late 2023 retail applications actually surged again to around 100,000 per month. These new retailers need to source products from a wholesale marketplace and we are confident that Dallas can become their destination of choice.
Regionally, Texas continued to grow in 2023. Our state added some 500,000 people in the past 12 months. This population surge fueled demand from businesses including in the retail sector. In fact, a record-setting $900 billion in retail sales occurred in Texas last year, showcasing the strength of consumer spending and serving as a magnet for businesses seeking opportunity and prosperity. For the Dallas area, that translated to 19 corporate headquarters relocations in 2023—11 of which moved from California including McAfee, Thermomix and Kelly-Moore Paint.
More stores, more company headquarters, more business: Put it all together and it means that what’s good for Texas is good for our exhibitors and our buyers too. Our lower cost of doing business, our right-to-work laws and the overall pro-business spirit of Texas are a winning combination...no matter which way the coin flips.
Cindy Morris,
CEO, Dallas Market Center