4 Retail Stocks To Power Your Portfolio This Holiday Season
Zacks Investment Research | Oct 08, 2019 09:53PM ET
Concerns related to U.S.-China trade tiff, volatility in crude prices, sluggish business spending and certain geopolitical problems are enough to dampen consumers’ enthusiasm ahead of the holiday season. In fact, imposition of tariffs has left some of the retailers with no other choice than to go for selective price increases. These may have a direct bearing on consumer spending, which remains one of the pivotal factors driving the economy.
Well if consumers choose to tighten purse strings and curtail their discretionary spending, retailers have to tough it out this shopping season. Apart from these, a strong U.S. dollar is likely to hit tourism, while a warmer winter may impact the sale of seasonal apparel and merchandise. Again, retailers will get six fewer days between Thanksgiving and Christmas this time compared with last year.
Undoubtedly, the sector’s prospects are closely tied to the purchasing power of consumers. Well consumers remain in good shape, courtesy of a solid job market as evident from the 50-year low unemployment rate of 3.5% in September. Further, the economy added a modest 136,000 jobs last month. Moreover, the data for the month of August was revised up to 168,000 from the previously reported 130,000 jobs created. A sturdy labor market is likely to stimulate consumer spending during the festive season.
Going by National Retail Federation’s ("NRF") recent Zacks Investment Research
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