5 Diversified Retail Stocks to Look for in May

Summary

• Retailers across the globe have seen a thrilling and permanent shift to online shopping.
• Multi-channel retail is the new normal for retailers.
• The focus for the industry is on-demand growth from online channels

In the past twelve months, there has been a thrilling and permanent shift to online shopping around the globe. Online retailer companies have also seen a spike in their profits during the various locally imposed lockdowns. Millions of customers have opted for online shopping options, and many will not be going back to brick-and-mortar stores. As the world progresses towards a new normal for diversified retail, and the focus for the industry is on-demand growth from online channels, the need for the logistic solution and sustainable growth. Multi-channel retail is the new normal for retailers of all goods.

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let’s have a look at 5 diversified retail company stocks that have been working meticulously to meet the challenges of the pandemic:

• B&M European Value Retail S.A. (LON: BME)

It is UKs leading variety good retailer. It has more than 800 stores in the UK and France.  The company has a unique and disruptive business model. B&M has a sound track record as far as the financials are concerned, with fast growth, elevated returns and a business model generating cash. The shares of the company form the part of the FTSE 250 index.

In its latest trading update issued on 4 March 2021 for Q4 FY’21, the company reported strong revenues and margins. It experienced elevated sales due to customers resorting to stockpiling throughout COVID-19.

On 6 May 2021, 8:17 a.m. GMT+1, its stock pegged at GBX 568.40, up by 0.28 percent. The stock has given a 1-year return of 74.83 per cent.

• ASOS PLC (LON:ASC)

It is an online retailer for fashion-loving youngsters around the world. It is a market leader in app and web experience. The Company has a curated list of 85,000 products sourced from more than 850 global and local brands for its customers. It also has huge warehouses in the UK, the US and Germany.

ASOS released Interim results for six months to 28 February ‘21 on 8 April 2021. It reported a surge in active client base by 1.5 million in the reported period. Total sales grew by 25 per cent though margins were affected by pandemic induced disruptions. The company is seeking to focus on investment for global growth against the backdrop of accelerated online penetration.

ASC Share, traded at GBX 5,168.00 on 6 May 2021 at 08:19 am GMT+1, down modestly by 0.12 per cent from the previous close. The stock has given a 121.37 per cent return in the last 1 year.

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• Ocado Group PLC (LON: OCDO)

It is one of Britain's leading online retailers and runs Ocado.com, a joint venture with Marks and Spencer Group Plc (LON: MKS). Ocado Retail delivers more than 50,000 products, including big brands, own-brand products and non-food select items.

In its’ Q1 Trading Statement issued on 18 March 2021, it showed a Revenue growth of 40 per cent. It expects a favourable revenue growth in the second quarter compared to the corresponding period last year.

On 6 May 2021 at 8:22 am GMT+1, its’ shares were at GBX 1,950, down 0.61 per cent close. The stock has given a 16.20 per cent return in the last 1 year.

• Studio Retail Group PLC (LON: STU)

It is a general retailing company based in the UK. It has a history of 60 plus years of being in business and was previously called Findel Plc. It is a British home shopping company and has recently sold its education arm.

It reported an exceptionally strong final quarter for FY’21. Its customer base grew by 36 per cent, and its receivables profile has improved. It reported a sales surge of 88 per cent year on year. Its’ adjusted profit before tax for FY’21 is expected to be near GBP 50 million, up about 75 per cent compared to last FY.

The company’s shares pegged at GBX 290.00, unchanged on 6 May 2021 at 08:26 am GMT+1. It has given a return of 58.4 per cent to the investors in the last 1- year.

• John Lewis of Hungerford PLC (LON:JLH)

It is an AIM listed stock, which focuses on building and retail sales of home and freestanding furniture. It owns showrooms across the UK along with an online presence. Its online business runs under the name of Just Doors, a platform for replacing kitchen cabinet doors.

In its’ Half yearly report released on 18 March 2021, company has reported an improved sales position at GBP 3.326 thousand. It majorly attributes this to company’s digital footprint, structural costs savings and government support during the pandemic.

Its Share, trades at GBX 0.95 at 8:28 am GMT +1. It has given a 1-year return of 90.57 per cent to investors in the last 1 year.

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