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Retail Stocks
#1
I've long thought that Barnes and Noble would suffer the same fate as Borders, at the hands of Amazon. And I personally have been buying more and more online in the past few years, to the direct detriment of WMT and TGT. And we all know this is a trend that has been growing and is likely to continue. But is it enough to scare you out of big retail names like WMT and TGT for the long term?

My answer so far has been a cautious "no," but then I read this today: Online purchases now make up 18 percent of all retail sales, and the trend is pointed sharply up.

I'm not going to trade all of my WMT, TGT, and others for AMZN shares this afternoon, but I'll be thinking about my retail allocation more seriously from here on out.

What do others think?
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#2
The only retail stock I own is SBUX, which I view as Amazon-proof. It also proved to be very defensive (from a fundamental standpoint) during the recession.

I have CVS, CMG, WFM and FL on my radar. CVS is the one I like best because I think they are trying to move into low-level healthcare services. However ultimately I am comfortable having very little exposure to retail.

An interesting play on Internet retail is IP, which makes cardboard boxes, among other paper products.
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#3
(05-01-2014, 01:45 PM)earthtodan Wrote: The only retail stock I own is SBUX, which I view as Amazon-proof. It also proved to be very defensive (from a fundamental standpoint) during the recession.

I have CVS, CMG, WFM and FL on my radar. CVS is the one I like best because I think they are trying to move into low-level healthcare services. However ultimately I am comfortable having very little exposure to retail.

An interesting play on Internet retail is IP, which makes cardboard boxes, among other paper products.

Starbucks is probably a great choice. IP is an interesting idea. In the same vein I was thinking of looking more closely at UPS and FedEx, though if Amazon gets their drone fleet of the ground it could be light out for those guys. Confused

I wouldn't worry so much about grocery stores, like WFM, but I'd think CVS and WAG should be scared just like WMT and TGT.
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#4
I only own WMT. They really do have the lowest prices and their website is great.

I personally would not feel comfortable holding any of the other names listed.
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