Wall Street Strategies
Login:  
Password:
  remember me
Sign Up | Lost Password
Retail Tailspin

5/17/2017
By Charles Payne, Principal Analyst

After the close, there were horrendous earnings reports and comp-store numbers from T.J. Maxx (TJX Companies) and Dick’s Sporting Goods (DKS).

As the death spiral for brick-and-mortar retailers (those particularly attached to malls) shifts to a negative velocity – a term many mathematicians say it’s impossible but I say it’s wholly appropriate – there is a notion it means consumers aren’t spending. Consumers are spending as the paradigm partially shifts, where more people live for the moment along with increasing wages. 

Last Friday, I pointed out the shift back to eating out versus buying groceries in the Retail Sales report; it is being corroborated by sharp moves in restaurant and bar stocks, including those that reported last night.

  • (RRGB) Red Robin Gourmet Burgers
  • (JACK) Jack in the Box

 

Mall traffic peaked in 2010 and declined by 50% through 2013, and has continued to decline since according to Cushman & Wakefield.  At some point, there will be a play as new business models emerge from the ashes, but don’t confuse brick-and-mortar retailers as a proxy for the economy. 

Moreover, we are traveling, eating out, and spending millions on concerts and movie tickets. In fact, I  paid a king’s ransom for two tickets to the Eagles, Fleetwood Mac, Steely Dan, Earth Wind & Fire, Journey and Doobie Brothers concert in July.

Charles Payne
Wall Street Strategies


 

Add a Comment!

Name:
Email:
Comment:
 
 
Submitted comments are subject to moderation before posting.
Charles Payne is featured on the Fox Business Network Monday-Friday at 6 PM ET on "Making Money with Charles Payne".

Charles Payne

FREE commentary in your Inbox! Click here
No credit card is needed.

The WStreet Market Commentary delivers the daily unbiased insight and guidance of Charles Payne and the Wall Street Strategies Research Desk.

The daily commentary takes a common sense look at the big picture, gives you advice on sector rotation and trends and helps you determine how news may affect your portfolio. We forecast what the future drivers of the market will be by interpreting the fundamental, technical, and behavioral aspects of the market.

From time to time, the commentary includes free stock picks and trading strategies to help you make money and maintain financial and mental balance in the stock market. The commentary is delivered twice a day, in the morning and afternoon, keeping you informed at pivotal times and frequently includes analysis of the major indices and actionable analysis of individual issues.

Take control of your future starting today. Simply click here to create your account.

Home | Products & Services | Education | In The Media | Help | About Us |
Disclaimer | Updated Privacy Policy | Terms of Use |
All Rights Reserved.