Store managers are heading into 2026 with optimism, while keeping a close watch on consumer confidence, inflation and labor costs, according to Levin Management Corp.’s 15th annual Retail Outlook Sentiment Survey.
The survey gathered input from retail and restaurant store managers and operators across LMC-managed retail properties. When asked how they expect their location will perform in 2026, 68.6% of respondents said it will perform much better or somewhat better. The economy and consumer confidence (71.3%) and inflation and rising costs (69.4%) ranked as the top factors expected to impact business in 2026, followed by labor availability and labor costs (36.1%).
“2026 is shaping up as a year where execution will matter more than ever,” said Matthew K. Harding, chief executive officer at Levin Management Corp. “With consumers focused on value, retailers are doubling down on fundamentals — strong service, tight inventory discipline and technology that improves efficiency in the store.”
This year’s results also point to shifting priorities at the store level, with technology-driven adaptations, including AI and automation, rising to the top (40.9%) as retailers focus on controllable areas that improve efficiency and day-to-day execution.
Here are some other key findings:
- 71.9% reported holiday sales were the same or higher; 65.3% said results met or exceeded expectations.
- 64.3% reported total 2025 sales were the same or higher than 2024, and 65.3% said traffic was higher or unchanged.
- In-person customer service and support ranks as the top brick-and-mortar advantage (39.8%).
- Over the past year, 24.1% reported no price increases in response to inflation, while 38.8% said prices rose under 10%, reflecting a trend toward modest adjustments rather than broad price hikes. Looking ahead, 35.5% said they anticipate raising prices further in 2026, while 44.9% said they are not sure.
- Hiring remained active, with 42.6% saying they are currently hiring.
“Our survey shows technology has quickly become the most common adaptation retailers are prioritizing, from AI and automation to payments and other tools that help teams work faster and serve customers better,” said Melissa Sievwright, vice president of marketing and corporate communications at Levin Management Corp. “Retailers are looking for practical technology that strengthens day-to-day execution and supports customer service at the store level.”
Overall, the findings suggest retailers are entering 2026 with steady demand but heightened price sensitivity, placing a premium on operational discipline, service and technology that improves execution.
LMC will conduct its next Retail Sentiment Survey in June.
