In This Article:
US retail sales data came in above economist expectations for November, rising 0.7% month-over-month. Retail Cities Managing Director Bryan Gildenberg joins Morning Brief to provide insights into the current trends in the retail sector.
Gildenberg describes the consumer market as robust, with nuanced dynamics across different economic segments. He highlights that high-end retailers like Costco (COST) and RH (RH) are seeing strong performance among affluent shoppers, while discount retailers such as Dollar Tree (DLTR) and Dollar General (DG) reveal that lower-income consumers continue to be "squeezed."
"I think all shoppers are being deal-sensitive; they're thoughtful and cautious about spending, but overall, consumers are in pretty good shape," he explains. However, Gildenberg adds, "I also think there's some question right now about exactly what's happening with pricing in the marketplace."
He believes the potential for price normalization in the retail sector remains an "open question" heading into 2025. As for promising retail stocks, he singles out Abercrombie & Fitch (ANF) and Urban Outfitters (URBN), calling them "probably the two best executors of store-based retail in the US."
Related Videos
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
This post was written by Angel Smith