Retail Weekend Wrap-Up | Week of February 9, 2026

Written By Ray Kang

Two Economies, One Market: What CRE Investors Need to Know

This week we got the CPI report, the jobs report, and a wave of retail and restaurant news — and all of it is telling the same story: we are living in a two-speed economy.

One group of consumers is doing just fine. The other is barely hanging on. And if you're a retail real estate investor or strip center owner, that split is now showing up in tenant health, leasing pipelines, and investment underwriting.

Here's what happened this week and what it means for your portfolio.

The Economy: What's Hitting the Consumer

Inflation Cools to 2.4% — Better Than Expected

The January CPI report came in better than expected. Annual inflation slowed to 2.4%, down from 2.7% in December — an eight-month low. Monthly prices rose just 0.2% versus the 0.3% economists forecast.

The good news:

  • Gas prices fell

  • Egg prices dropped 7% (down 34% over the past year)

  • Shelter costs rose only 0.2% for the month, bringing the annual shelter increase down to 3% — a meaningful moderation and the most important number for real estate

The not-so-good news:

  • Airfares jumped 6.5% — steepest gain in nearly four years

  • Appliance prices spiked — economists pointing to tariff pass-through to consumers

  • Core CPI at 2.5% — still above the Fed's 2% target

The direction is encouraging and boosted expectations for potential rate cuts later in 2026. But the Fed isn't moving yet.

What this means for CRE: Shelter cost moderation is a significant signal. Lower inflation improves the rate-cut outlook, which directly impacts cap rates, deal financing, and buyer appetite for retail assets.

Sources: CNN | CNBC

January Jobs Report: 130K Added — But 2025 Revisions Were Brutal

The delayed January jobs report finally dropped on Wednesday, and the headline was a relief. 130,000 jobs added versus 55,000 expected. Unemployment ticked down to 4.3%. Healthcare and construction led the gains.

But the real story was buried in the revisions. The BLS revised all of 2025's job numbers — and it was ugly. Total jobs added in 2025 went from 584,000 down to just 181,000. That's an exceptionally weak year by almost any standard.

For the retail world specifically: retail trade and leisure/hospitality each added only about 1,000 jobs in January.Basically flat. The headline beat was nice, but the underlying picture for retail-facing employment is soft.

What this means for CRE: The headline beat is encouraging for market confidence, but nearly flat retail and hospitality hiring is a yellow flag for strip center tenant health. The severe downward revisions to 2025 also reframe just how fragile the labor market was last year — something to keep in mind when evaluating tenant credit and lease renewal risk.

Sources: CNBC | Indeed Hiring Lab

America's Two-Speed Consumer Economy

This is the story of the week — and the theme that ties everything together.

Bank of America's February consumer data shows the split clearly. High-income households posted 2.5% year-over-year spending growth in January. Low-income households managed just 0.3%. Middle-income came in at 1.0%.

Moody's Analytics data shows that the top 10% of U.S. households now account for nearly half of all consumer spending — a gap that has never been wider.

Delta Air Lines CEO Ed Bastian put it bluntly this week: the strength in the consumer sector is at the higher end, and the lower-end consumer is struggling. PepsiCo cut snack prices up to 15% after consumers pushed back on pricing.

When you see headlines about resilient consumer spending — they're accurate. But that spending is being carried by the top. And if you own retail real estate, you need to understand which consumer your tenants are serving.

What this means for CRE: This directly impacts tenant mix strategy. Value-oriented tenants — dollar stores, discount grocers, off-price retailers, QSR — are thriving because they serve the consumers who are still spending regardless of how they feel about the economy. Discretionary and mid-tier concepts face the most headwinds. Strip centers anchored by necessity retail are better positioned for 2026.

Source: PYMNTS

December Retail Sales Flatlined — But January Bounced Back

The delayed December retail sales data was a surprise miss. Retail sales were completely flat (0.0% vs. 0.4% expected). Furniture stores, electronics, appliances — all down. Even restaurants dipped.

But January told a different story. The NRF Retail Monitor showed sales up 0.2% month-over-month and 5.7% year-over-year — the fourth consecutive monthly gain.

December looks more like a holiday hangover than a spending collapse. The consumer stumbled but got back up. The question is how long they can keep this up with confidence at its lowest level since 2014.

What this means for CRE: The disconnect between rock-bottom sentiment and continued spending remains the defining tension for retail real estate. Tenants are still generating revenue, but landlords should be monitoring sales performance closely — especially in centers with discretionary-heavy tenant mixes where a pullback could come faster.

Sources: Fortune | NRF/Hardware Retailing

Retail & Restaurant Industry News

Eddie Bauer Files for Bankruptcy — 175+ Stores Winding Down

Eddie Bauer's store operator filed for Chapter 11 bankruptcy this week — its third filing in just over 20 years. About 180 stores in the U.S. and Canada are winding down. The company had only approximately $20 million in cash against $1.6 million per week in operating costs. Liquidation sales are already underway, and unless a buyer emerges, all stores will close permanently.

This follows Saks Global filing Chapter 11 in January (closing 8 Saks Fifth Avenue stores, 1 Neiman Marcus, and most Saks Off 5th locations) and Amazon shutting nearly all of its Go and Fresh stores this month.

What this means for CRE: Eddie Bauer is mostly in malls and outlets, so strip center impact is limited. But the broader signal matters — specialty retail brands that failed to evolve their physical store model are being weeded out. The upside for retail real estate? The bankruptcy wave of 2024–2025 freed up space that value and experiential tenants are now absorbing, and available supply is tightening because new construction remains extremely sluggish.

Sources: CNN | Retail Dive

Pizza Hut Closing 250 U.S. Locations — Yum Brands May Sell the Brand

Yum Brands announced on their Q4 2025 earnings call that they're closing approximately 250 Pizza Hut locations in the first half of 2026 — about 4% of the U.S. system. The closures are part of a "Hut Forward" program targeting underperforming stores with marketing investment and technology modernization.

The bigger story: Yum is conducting a full strategic review of Pizza Hut that could result in a sale of the entire brand. U.S. same-store sales fell 5% in 2025 while rival Domino's posted positive comps. Meanwhile, Taco Bell — also owned by Yum — posted same-store sales growth of 7%.

What this means for CRE: Pizza Hut locations are typically 1,200 to 2,500 square foot freestanding pads or endcaps in strip centers — directly relevant to retail strip center investors. When these go dark, they tend to get re-tenanted quickly by expanding QSR concepts like Raising Cane's, Dutch Bros, or Wingstop. If you have a Pizza Hut tenant in your center, now is the time to evaluate your lease exposure and start conversations about what comes next.

Sources: Restaurant Dive | Fox Business

Darden Winds Down Bahama Breeze — Closes 14, Converts 14

Darden Restaurants, the company behind Olive Garden and LongHorn Steakhouse, announced it is shutting down the entire Bahama Breeze chain. 14 locations close outright and 14 will be converted to other Darden brands. Closing stores will operate through early April.

What this means for CRE: This is actually a positive story for retail real estate. When a strong operator like Darden closes an underperforming brand but converts the sites to better-performing concepts in their portfolio, the space stays occupied. The landlord doesn't go dark. That's the kind of portfolio management we want to see from restaurant operators — and it's a very different outcome than a bankruptcy liquidation.

Source: Restaurant Dive

Restaurant Industry Eyes $1.55 Trillion — But Margins Are Under Siege

The National Restaurant Association's 2026 outlook projects the industry will hit $1.55 trillion in sales and add over 100,000 jobs. That sounds positive — but analysts are calling it a "humbling year."

Traffic growth is expected to be less than 1%. Food costs are rising, especially beef. Supply chains remain disrupted by tariffs. And operators can't raise prices much further without losing customers.

The brands winning are the ones taking market share — Raising Cane's, Wingstop, Chick-fil-A, Cava. These are the tenants signing leases aggressively and paying above-market rents for prime strip center locations. Weaker casual dining concepts, on the other hand, are under real financial pressure. The strong are getting stronger and the weak are getting weaker.

What this means for CRE: Restaurant tenants remain the top driver of strip center leasing activity, but operators are under real financial stress. Landlords should be watching tenant health closely. The brands expanding are strong credits, while weaker casual dining concepts may need rent relief or may not renew.

Sources: RestaurantNews.com | Restaurant Dive

Key Takeaways for CRE Investors & Retail Property Owners

1. The consumer split is your tenant strategy. Centers anchored by necessity and value — grocery, discount, healthcare, QSR — are positioned to outperform in 2026. Centers heavy on discretionary, mid-tier retail face the most risk. Know which consumer your center serves and underwrite accordingly.

2. The rate environment just got more favorable. CPI at 2.4%, shelter costs moderating, and a better-than-expected jobs report. That combination puts us on a path toward potential rate cuts later this year. For CRE investors, the cost of capital may start easing — which directly impacts deal activity, cap rate compression, and buyer appetite. If you're thinking about selling a well-positioned asset, the window may be opening.

3. Watch the tenant reshuffling — there's opportunity in the churn. Eddie Bauer, Pizza Hut, Bahama Breeze, Saks Off 5th — these are all spaces coming back to market while new retail construction remains extremely limited. Value retailers, fitness concepts, medical users, and fast-growing QSR brands are all competing for that space. The key is being proactive — don't wait for a tenant to leave. Start those conversations now and position your centers to capture the strongest demand.

About This Report

The Retail Weekend Wrap-Up is published every week by Ray Kang, CCIM, a commercial real estate investment sales advisor specializing in retail strip centers across San Antonio, Austin, and the Rio Grande Valley. With over a quarter of a billion dollars in transaction volume over the past five years, Ray helps private clients maximize returns through timely market intelligence, property-specific strategies, and expert advisory during both the hold period and the disposition process.

Have questions about your retail property or portfolio? Contact us today to discuss how current market conditions are impacting your investment — and what strategies can help you stay ahead.

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Ray Kang https://www.raycrebroker.com
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