Consumer spending has been growing steadily, boosting retail sales and creating an optimistic outlook for continued growth in the sector. Thus, investing in fundamentally stable specialty retailers, Driven Brands Holdings Inc. (DRVN), Sally Beauty Holdings, Inc. (SBH), and Upbound Group, Inc. (UPBD) could be a wise move.
Consumer spending accelerated to an annual rate of 4.2% in the fourth quarter of 2024, up from the prior quarter’s 3.7%, mainly driven by spending both on goods and services, especially purchases of durable goods. This rise resulted in a 2.5% growth in the U.S. economy from the past year, signaling a steady road for future growth.
