Are you old enough to remember Woolworth? If not, you are definitely old enough to remember Bed Bath Beyond. Neither of these once-dominant retailers exists anymore (at least not as they once did). But there's one thing about the retail business that doesn't change: location, location, location. Here's why you might want to buy Realty Income (NYSE: O) over a retailer.

If you take even a cursory look at the retail sector, you'll find that it's filled with brands that are "up and coming" and brands that have come and gone. There's a lot in between the two extremes. In the come-and-gone camp would be Woolworth, Sears, and Kmart. All were once dominant names that fell on hard times. The in-between space includes companies like Victoria's Secret, which was once the leading lingerie retailer but has been suffering as competitors like Arie, owned by American Eagle Outfitters, have gained share.

Image source: Getty Images.

Continue reading

Source Fool.com