Will certain retailers do well during a recession?
Wal-mart comes to mind - are there any others?
Answers
197 points
whiteshadow204 answered 2 years ago …
From my limited experience, Wal-mart stock is almost like an inverse ETF of the rest of the retail market. Target may be comparable, and I'd also look into dollar stores, and pawn shops. People also continue buying things like groceries and cigarettes during a recession. It might also be interesting to look into cheaper alternatives that people would use, for example buying a cup of coffee from McDonald's rather than Starbucks. I'm sure there's a better example than McDonald's, especially now that they've supposedly increased their coffee quality, but you get the idea...
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372 points
chidog47 answered 2 years ago …
I've always been a fan of Costco (NASDAQ:COST). I've always shopped there with my family and they are ALWAYS packed. There's this aura around them. Steady rise since March and it looks like nothing is stopping them. We'll see where they stand after this Thursdays earnings. Hope they beat the analysts!
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107 points
billddrummer answered 2 years ago …
WMT is the easiest answer, but not the only one. True, it's been able to dominate discount retailing for decades, and it's typically the first place people think of when it's time to save money. But in addition, I'd look at Costco (COST), Safeway (SWY) (stores with gas pumps give gas discounts to Club Card members), and Kroger (KR). Cash America International is the largest pawnshop chain, and as long as its pawn business surpasses payday loans, it should be a good pick as well.
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422 points
WayneMulligan answered 2 years ago …
I decided to weigh in on this question myself, check out my latest article on the TickerHound blog:
http://blog.tickerhound.com/?p=79
Best,
Wayne Mulligan
Founder/CEO
TickerHound.com
102 points
ezlink answered 2 years ago …
In addition to Wal-mart, some of the discount clothing store may quite well also. For example, Marshall's, Ross, T J Max, and lest not forget the outlet malls. Maybe I am crazy, but I feel sure the healthy-income residents in some of the elite subdivisions here in Texas, will not tell little Johnnie he cannot have the $100.00 jeans or the $150.00 shoes, ect,
Thanks for reading,
Evelyn Link
102 points
LARRUTH answered 2 years ago …
Wal-Mart is obvious - especially due to their huge price slashing in groceries. CostCo also works good for bulk purchases and repackaging to fit your family's needs.
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4087 points
EthanR answered 2 years ago …
Dollar Tree! Stock doing well lately. My favorite discount store. The only dollar store that actually sells everything in the store for only a dollar.
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