What state of economy favors retailers?

Retailers typically fare better in a strong and growing economy, as there is typically more disposable income available for purchasing goods and services. During times of economic growth, consumers are generally more confident and willing to spend, which can lead to increased demand for retail products and services.

In addition, a strong economy can also lead to increased competition among retailers, as businesses are able to invest more in marketing and expansion efforts. This can lead to more innovation and better product offerings for consumers, which can drive demand and support growth in the retail sector.

On the other hand, during times of economic downturn or recession, there may be a decrease in demand for retail goods and services, as consumers are more cautious about their spending and may prioritize necessities over discretionary purchases. This can lead to a slowdown in sales and profitability for retailers.

Overall, retailers typically fare better in a strong and growing economy, as there is typically more disposable income available for purchasing goods and services, and increased competition can lead to innovation and better product offerings for consumers.