Kroger, Safeway, and Rivals Face Margin Headwinds
Supermarket chains like Kroger and Safeway have posted a string of strong quarterly earnings. But with the costs of gas and agricultural products spiking, that could all change.
Supermarket chains like Kroger and Safeway have posted a string of strong quarterly earnings. But with the costs of gas and agricultural products spiking, that could all change.
Retailers are forecasting a strong 2011 as the economy continues to pick up speed. A boost in retail sales is good news, of course. But what, exactly, will it do for your wallet? And how will higher gasoline and clothing prices play out in the mall and in your portfolio?
After a holiday season that marked a return to some form of normalcy, merchants are bracing for a year of mild sales growth and more stable operations. Whether that momentum holds is an open question, given the state of the housing and job markets.
Spending for the lovers' holiday this year is expected to climb 5.8% over 2009, and that spells opportunity for investors. Here are some greeting card, candy, jewelry, flower and restaurant stocks that could get a lift from sweethearts looking for that special something.
Many shoppers who took advantage of the early holiday sales in November held back and forced retailers to cut prices as Christmas neared. Despite increases in luxury spending, the results show that mainstream consumers remain focused on discounts.
This global designer, maker and retailer of fine jewelry and other gift items went through the recession like it never happened. The Tiffany name is globally known, yet analysts agree it has plenty of room to expand in the U.S. and worldwide.
On Wall Street, the retail sales figures that count aren't absolute numbers. Investors act based on how those numbers compare to what was expected, and in the case of Black Friday Internet sales, reality beat the predictions. That's good news for Amazon.
The nation's three biggest department-store operators have been disproportionately pinched by the downturn in consumer spending. That's what happens when you're stuck in the middle of the retail-price spectrum during a period of sagging home values and lofty unemployment. [Video]
The giant retailer's profits grew 9% in the third quarter to $3.4 billion. But revenue disappointed analysts, mainly due to a small decline in U.S. sales. Still, the company raised its future earnings guidance.
Fund manager Neil Hennessy believes investors should target retail stocks that are likely to thrive in slow-growth economic conditions -- but which also stand to benefit when the economy picks up again. Here are some of his favorites.
Retail stocks tend to rise ahead of other sectors in the early stages of an economic recovery, and so far, following a familiar pattern, both up-market and discount chains have benefited at the expense of middle-market players. So is it time to buy stock in wholesale clubs?
Some merchants adjusted quickly to the "new normal" of penny-pinching shoppers, but others are still struggling with shrinking consumer budgets or headwinds they were fighting before the bottom fell out. Here's a look at the two groups that are going in two different directions.












