This week, Robbie Cather from our company attended the annual CenterBuild conference in Phoenix, a two-day event sharing ideas and learning.
Perhaps the most interesting thing he shared was a stat from Williams Sonoma regarding the relationship between bricks & mortar and e-commerce. When their company closes a physical store, online sales in that market drop by 7%. Conversely, when they open a new location, sales in that area increase by 10%. Sounds like another case study in favor of an omnichannel retail experience.
While Robbie was at CenterBuild, I attended the annual Federal Reserve Christmas dinner for former board members. I was able to ask the presenting economist what he sees the rate being in 2025. His response was somewhere between 3% and 4%. For those that are may not be familiar with what a neutral rate represents, is the theoretical interest rate that neither stimulates nor restricts economic growth. While the neutral rate will vary if his projection is correct, it’s a possibility that the discount rate might be reduced another hundred basis points through the end of 2025.
