At TTCM we see a vastly over-saturated retail market in the United States. Retailers such as Best Buy (NYSE:BBY), Target (NYSE:TGT), and Gamestop (NYSE:GME) have consistently added square footage to varied degrees of success. Online retail and Amazon (NASDAQ:AMZN) in particular has had a catastrophic impact on some of these retailers operations. The three retailers named have been great operators, but the ease of shipping, and access to find the lowest price has pressured their models. Target is the most insulated from Amazon's threats as many of their goods such as Soda for instance, are not practical to be shipped across the country. Gamestop is trying to protect itself by being able to offer video games online. Time will tell if Best Buy will be able to make the adjustments necessary to thrive in this new era for retailers, but I would demand a significant margin of safety to get interested.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.