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Ray Washburne on gas price trends, state of luxury retail and strength of the consumer
CNBC Television· 2025-11-28 16:32
Gasoline Market - Sunoco's gasoline sales are flat overall for the economy, but the company is having a great year with approximately 16 billion gallons in sales, up 7% [2] - Diesel sales are up about 3% to 4%, indicating commerce growth within the United States [3] - Gasoline prices are down about 25% nationally (excluding California), around $3 per gallon, but driving is flat [4] - Electric vehicles (EVs) are eating into gasoline sales by about 1% per year, and car efficiency is reducing sales by about 0.5% per year, totaling a 1.5% reduction annually [5][6] Luxury Retail - Luxury retail centers are up double digits, over 12% this year, with Holland Park Village in Dallas up about 14% in luxury sales, indicating strong high-end consumer spending [7] - Mid-range tenants are up single digits, around 5% or 6% [9] - Creating an experience is crucial for attracting luxury shoppers to physical stores [8] Casual Dining - Commodity pressures have flattened this year, except for beef due to increased competition from India and China [10] - Delivery services have grown from 2% to 3% of sales to 15% to 20% [12] - Consumers, particularly those under 35, are willing to pay delivery fees [12] Consumer Sentiment and Economic Outlook - Consumers' credit cards are maxed out [13] - Labor costs are currently very flat [14] - Anticipating flat sales in 2026 for both Sunoco and shopping centers [15] - The current regulatory and tax environment under the Trump administration and Congress is positive for businesses [17]