AUS
NZ
UK
CA
USA
IND
Source: jayk67, Shutterstock
Summary
- Retail companies experience high demand even during an economic slowdown, which is the why they witnessed an exponential growth over the past year.
- Some companies have outperformed expectations even through their brick-and-mortar establishments.
- Some of the fastest growing retail stocks are Costco Wholesale Corporation, iRobot and Big Lots, Inc.
The retail business is the one which experiences continuous modification. With a diverse list of product categories, retail stores can attract business from all types of consumers giving them revenue throughout the year.
Most retail stores have a brick-and-mortar type of establishment allowing consumers to buy products that they can materially examine. However, over time, digital retail platforms have grown exponentially and have urged brick-and-mortar establishments to develop a digital presence.
In light of the above, let us zero in on a couple of retail stocks that have been on the move in 2021:
Costco Wholesale Corporation
Costco Wholesale Corporation (NASDAQ:COST) has been a leading wholesale supplier of groceries, appliances, television, media, automotive supplies, furniture, and a lot more. The corporation operates an international chain of membership warehouses.
Moreover, Costco also operates a manufacturing business, including food packaging, meat processing, optical laboratories, and jewellery distribution. Additionally, Costco has a private label called Kirkland Signature providing retail products and operates self-service gasoline stations sprawled throughout US.
The company reported net sales worth US$19.14 billion during the month of December 2020, which was an increase of 12.3% over the same month last year. For the 18 weeks ending 3 January 2020, the company clocked net sales worth US$65.47 billion.
Costco stands apart from its contemporaries due to its affordable prices. It offers a diverse range of products to choose from, all of which are available at affordable rates. During the pandemic, the company has gained popularity for its lower-priced products.
Costco has also announced its dive into curb-side pickup services. With this new venture, customers would now be able to place orders online and would be updated about when their order is ready, which they can then collect from the roadside pickup.
The company share prices have increased about 8% in the last 6 months. Costco closed at US$352.43 per share on 29 January 2021.
Big Lots, Inc.
Big Lots, Inc. (NYSE:BIG) is one of the few companies that was able to obtain stable revenues during the pandemic through its brick-and-mortar establishments.
The company is focused on selling home essentials like furniture, consumables, electronics, toys, and accessories. The company focuses on providing cheaper products and saving costs for its consumers.
For the third quarter of FY20 ending 31 October 2020, the company reported an 18% increase in its net sales year-on-year and a record high quarterly increase of 17.8% in comparable sales.
However, net income declined 74.6% compared to previous year. This drop was attributed to the highly increased earnings during Q3 in 2019 because of a one-time after-tax benefit of $136.6 million.
Big Lots has been one of the fastest growing retail stocks during the first quarter of 2021. However, the company’s share market performance has been varied, with a recent decrease in its share price due to Loop Capital downgrading the stock to hold with a $60 price target. The company also recorded share price highs during the same week due to a hike in retail spending in January.
At present, the company share prices have increased over 50% in the last 6 months. Big Lots closed at US$59.68 per share on 29 January 2021.
