The retail industry is going through a tumultuous four years of never-before-seen shockwaves. First, the pandemic justified the government to shut down the economy, causing many retailers to go bankrupt. After reopening, those that remained briefly benefited from the spurt of “revenge shopping” by consumers who used the stimulus checks the government handed out.
Unfortunately, that ignited the highest level of inflation the country has seen in 40 years, followed by the fastest ratcheting up of interest rates ever recorded. The Federal Reserve hiked rates 11 times in 2023. With inflation unrelenting, the Fed is in no mood to cut rates.
It means retailers will have to contend with a higher-for-longer policy that leaves consumers in no mood to spend money beyond necessities. With that backdrop, it may seem the retail sector is no place to shop for stocks. Yet, if you know where to look, you can find good retail stocks to buy hidden amongst the wreckage.
They will thrive for years and generate fantastic returns for your portfolio. Walmart (WMT) Any discussion of retail stocks to buy now must start with Walmart (NYSE: WMT ). Deemed one of the premier essential businesses during the pandemic, the retail king could keep selling groceries and goods when its rivals were forbidden.
In the ensuing economic chaos that followed, Walmart remains a location for consumers to shop. The need for everyday low pricing has the retailer’s sales soaring. Sales jumped 6% from last year to $161.
