Retail outlook has deteriorated for about five years now - a struggle longer than that of the commodities markets - with major retailers decreasing physical store presence amid fierce competition and the rising specter that haunts every company's conference calls: the Jeff Bezos-run behemoth Amazon.
Traditional retailers have been working on redesign of physical stores and an increase in their digital presence to maintain sales. Investor expectations for the sector remain quite low, with declining foot traffic that still exceeds estimates being cheered as a win. However, mall traffic appears to be picking up slightly.
Amid widespread short positions across the industry (outside of TJX Companies?), good news - or even just less bad news - from retailers could provide gains for investors who are willing to take a risk. Even so, the entire industry has much to prove, and sometimes during times of uncertainty, the best place for the investor is to sit on the sidelines, watching and waiting for the right moment to pounce.
Fairly in-depth discussion of the retail sector can be found here: https://www.nytimes.com/2017/08/11/business/dealbook/retail-wall-street-macys-jc-penney.html
Traditional retailers have been working on redesign of physical stores and an increase in their digital presence to maintain sales. Investor expectations for the sector remain quite low, with declining foot traffic that still exceeds estimates being cheered as a win. However, mall traffic appears to be picking up slightly.
Amid widespread short positions across the industry (outside of TJX Companies?), good news - or even just less bad news - from retailers could provide gains for investors who are willing to take a risk. Even so, the entire industry has much to prove, and sometimes during times of uncertainty, the best place for the investor is to sit on the sidelines, watching and waiting for the right moment to pounce.
Fairly in-depth discussion of the retail sector can be found here: https://www.nytimes.com/2017/08/11/business/dealbook/retail-wall-street-macys-jc-penney.html
