Discount stores

Dollar, discount stores could strengthen after coronavirus


Dollar General and Dollar Tree are among the retailers that could benefit after the COVID-19 pandemic ends, JPMorgan analyst Matthew Boss said Thursday.

“I think the discounters, dollar stores, low prices and strong global brands could come out stronger, take market share, use their size and scale,” Boss said in the “Mid Report. -time “from CNBC.

On the contrary, Boss said, the coronavirus crisis and the resulting economic shock could be more bad news for department stores and specialty stores in malls.

“If we come out of there in a more recessionary environment, this is where we stay even more cautious,” said Boss, who is widely regarded as the best retail analyst on Wall Street. “This is where we watch the balance sheet, and we really pay attention to the competition and how fiercely it may seem on the other side, because the dollars may be more limited.”

The spread of the coronavirus in the United States has resulted in the temporary shutdowns of many non-essential businesses. But there are fears that the economic impacts will last longer than the pandemic, with some expecting a record number of store closings in 2020.

“I would say the # 1 theme right now in retail is survival,” Boss said. “I think you’re going to have a clear bifurcation between the structural winners and the multi-year market share donors that come out of it.”

In addition to Dollar General and Dollar Tree, Boss said Five Below and Ollie’s are well positioned to continue to attract consumers and have “debt-free balance sheets.”

Low-cost retailers Burlington, the owner of TJ Maxx, TJX and Ross Stores, will also remain attractive as consumers seek value, Boss argued. “There will always be a treasure hunt,” he said.

Boss also named Nike and Lululemon as the type of powerful brands that will see their market share increase once much of the economy picks up after the COVID-19 crisis. The shift to e-commerce could also “happen at an accelerated pace,” he said.


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