Retail Sales Are Up. Is Now the Time to Buy Retail Stocks?
The retail apocalypse that has market much of this century has mostly run its course. While many kept going (often undergoing drastic changes) and some didn't survive, most retailers have adapted to the new normal and now have omnichannel operations in place.
But succeeding with a new business model didn't manage to prevent COVID-19 from devastating sales for many in 2020, even at leading retail companies like Nike and Nordstrom. Restaurants didn't fare better either, with the likes of Starbucks and McDonald's still recovering from closed dining rooms. A few retail categories did benefit from sales growth during the pandemic, such as general retailers like Walmart and Target (NYSE: TGT), and home improvement operations like Home Depot (NYSE: HD) and Lowe's (NYSE: LOW).
Recent economic indicators suggest things might be changing. The Census Bureau's preliminary September retail sales report released last week shows a 1.9% increase in retail sales from the August report, and a 5.4% increase from the same month last year. As the holidays approach (and the most active retail season of the year), what does this mean for retail stocks and investors in those stocks?
Source Fool.com
