
NYSE:M
Nothing will change here in the long-term. Be selective in investing in retail today. He prefers Costco, which offers the lowest prices, and Amazon whose margins keep improving. Why bother with retailers who may be overtaken by new business models? The overall economic boom may raise all boats, but how long can that last?
Retail sales is not going away, it is just the model and delivery sources that is changing. Online is taking from bricks and mortar. There won’t be one winner and one loser. There’ll just be a tug-of-war. The numbers basically support online growing at 12%-14%, and bricks and mortar growing at 1% or 2%. That is going to go on for some time. This company has a lot of embedded capital, and they can’t be nimble. They have to create a new desire for people to come into their stores.
(A Past Top Pick Jan 30/17, Down 35%) It is a turnaround stock and she hoped it would be a quicker turnaround. They announced they are closing 100 stores and repurposing the stores or selling them off. They can compete in the online sales space. She still believes it can be one of the retail turnaround stories.