What’s Driving Strong Retail Sales in 2026?

Knowledge at Wharton

  • Jul 21, 2026
  • 14:13
  • Full Episode

ABOUT THE EPISODE Inflation has changed how consumers spend, but it has not stopped them.

Barbara Kahn, Patty and Jay H. Baker Professor of Marketing at the Wharton School of the University of Pennsylvania, explains why retail spending remains strong despite economic uncertainty.

Kahn examines the shift toward discounts, wellness, and extraordinary experiences, the struggles facing aspirational luxury brands, and the changing role of malls and e-commerce. She also explains why retailers must carefully balance customer demand with inventory, debt, operating costs, and expansion.

ABOUT THE PODCAST Every day, business scholars answer pressing questions in their research - but what do their insights mean for you? In this podcast, Wharton faculty dive into what inspired their studies and how their findings resonate with the world today. Learn how research insights translate into knowledge you can use, with host Dan Loney.

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Brief Summary

Retail sales are strong despite inflation, with consumers prioritizing experiences over luxury goods.

Key points

  • The Ripple Effect Podcast Introduction. Join host Dan Loney as he explores groundbreaking research from Wharton professors.
  • Surprising Retail Growth. Despite inflation, retail sales are stronger than expected, raising questions about consumer behavior.
  • Shifts in Consumer Spending. Consumers are prioritizing experiences over physical goods, reshaping retail dynamics.
  • The Evolving Role of Malls. Top-tier malls are stabilizing, adapting to new consumer preferences and experiences.
  • E-commerce Resilience. E-commerce continues to grow as consumers become more sophisticated in their shopping habits.

Tension

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