Retail Stocks Struggle to Remain Competitive with Online Retailers, Reports Leading Financial e-Letter Investment Contrarians

Share Article

In a recent Investment Contrarians article, editor Sasha Cekerevac reports that a recent survey conducted by comScore indicates that over 60% of consumers have visited an electronic retailer to examine the products in-store, and then purchased the goods online. Cekerevac contends that, over the last decade, Internet shopping has changed the retail market sector forever, and in order to survive, retail stocks must now adapt and offer a service that customers need and want, but the Internet can’t offer. Until they do so, Cekerevac believes retail stocks will continue to struggle in the increasingly competitive market.

Retail Stocks Struggle to Remain Competitive with Online Retailers, Reports Leading Financial e-Letter Investment Contrarians

Retail Stocks Struggle to Remain Competitive with Online Retailers, Reports Leading Financial e-Letter Investment Contrarians

Best Buy itself is under increasing pressure to survive, as corporate earnings have continued to decline… Consumers want more in this market sector than simply buying a commodity when they visit the physical store of retail stocks.

Past News Releases

RSS

In a recent Investment Contrarians article, editor Sasha Cekerevac reports that a recent survey conducted by comScore indicates that over 60% of consumers have visited an electronic retailer to examine the products in-store, and then purchased the goods online. Cekerevac contends that, over the last decade, Internet shopping has changed the retail market sector forever, and in order to survive, retail stocks must now adapt and offer a service that customers need and want, but the Internet can’t offer. Until they do so, Cekerevac believes retail stocks will continue to struggle in the increasingly competitive market.

Cekerevac cites Best Buy as just one example: “Best Buy itself is under increasing pressure to survive, as corporate earnings have continued to decline… Consumers want more in this market sector than simply buying a commodity when they visit the physical store of retail stocks.”

While it is true that Best Buy is not a brand in itself (as it doesn’t make its own products), Cekerevac concedes, he still argues that the stock must create an environment in which clients feel that the physical experience of going to a store exceeds what they can get online, to remain competitive in the market.

The Investment Contrarians editor notes that lululemon athletica is one of a few retail stocks that have recently embraced the new realities of the market sector. Offering clients in-store yoga lessons, lululemon creates social connections with its clients—which the Internet, of course, cannot—and goes beyond just shopping, he explains.

“[It’s] about changing an entire culture of traditional retail stocks to a more dynamic market sector,” says Cekerevac. “This will not be an easy change for many retail stocks.”

With Internet use continuing to grow, the market sector will evolve, and the retail stocks that are able to capture the new shopping patterns will do exceptionally well; those that fail to understand the market sector will continue to decline, concludes Cekerevac.

To see the full article and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.

Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”

The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.

After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.

Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.

Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.

George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Sasha Cekerevac
Visit website