Consumer & Retail companies have been through a major shift in recent years, which accelerated during Covid-19. According to KPMG, the past few months have brought unprecedented uncertainty, complexity and change to the retail industry. In a post-covid world, some retailers will thrive while others will struggle to survive.
When we’re discussing the investing landscape, C&R stocks mostly include grocery, trade, logistics and the supplier industry. Digitalization in these sectors transformed the entire business model and outlook of the industry. E-commerce, customer journeys, product information, transport and logistics are all important areas that are affected by digital solutions.
One of the representative index of this sector – The VanEck Vectors Retail ETF (RTH) has returned 31% in the last 12 months, and 80% since the March lows. This rebound occurred mainly due to the successful digitalization process done by many leading firms.
Here are some of the sector’s Top Stocks for 2020\2021:
Amazon.com – (AMZN)
Amazon is a cloud computing giant and the largest American e-commerce company. Founded in 1994 by Jeff Bezos, it was originally known for selling books through its website (and later digital versions via its Kindle e-reader), Amazon has built up a customer service, inventory, and shipping empire.
The stock returned 69.01% in the last 1 year, almost doubling from its March lows.
lululemon athletica inc. – (LULU)
Founded in Vancouver, Canada in 1998, lululemon athletica is an international technical athletic apparel company for yoga, running, training and most other sweaty pursuits. A number of high-profile, strategic acquisitions and moves (Such as the purchase of the home gym company – Mirror) has made Lululemon into a sport powerhouse.
The stock returned 55% in the last 1 year and has more than doubled since March.
Big Lots Inc. – (BIG)
Headquartered in Columbus, Ohio, Big Lots, Inc. is a community retailer operating more than 1,400 Big Lots stores in 47 states, dedicated to friendly service, trustworthy value, and affordable solutions in every season and category – furniture, food, décor, and more. For Q3 FY 2020 ended October 31, Big Lots reported an 18.0% year-over-year (YOY) increase in net sales and a record 17.8% quarterly increase in comparable sales.
The stock returned 52.96% in the last year and it tripled in value since its March lows.
GrowGeneration Corp. – (GRWG)
GrowGeneration owns and operates hydroponics garden centers across the U.S., and it is the largest of its kind. The company sells hydroponic equipment, soils, nutrients, and lighting fixtures in states where pot is legal. The company completed its acquisition of The GrowBiz, the nation’s third-largest chain of hydroponic garden centers. Aided by the acquisition, GrowGeneration now operates a total of 36 garden centers.
The stock returned 150.94% in the last 3 months.
CarParts.com Inc – (PRTS)
CarParts.com is a technology-driven eCommerce company improving the way drivers shop for the parts they need. After being in business for over 20 years, we’ve focused and streamlined our efforts to build a seamless factory-to-consumer online shopping experience. For Q3 2020, CarParts.com reported a 69.5% YOY increase in net sales and a 105% gain in e-commerce sales.
The stock returned 391.26% in the last 1 year.