The Middle-Class And Retail Squeeze Is On! (Podcast)

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Includes: CLIX, EMTY, FDIS, FSTA, FTXD, FTXG, FXD, FXG, IBUY, IYC, IYK, JHMC, JHMS, ONLN, PBJ, PEJ, PEZ, PMR, PSCC, PSCD, PSL, RCD, RETL, RHS, RTH, SCC, SZK, UCC, UGE, VCR, VDC, XD, XLP, XLY, XRT, XS
by: Tematica Research
Summary

We are seeing the retail apocalypse renewed as department and other stores deliver flat to falling same-store sales metrics, while off-price and warehouse retailers continue to win consumer wallet share.

Brick-and-mortar retailers are once again shutting locations in big numbers, which will have repercussions for a variety of REITs.

The fundamental factor driving this is our Middle-Class Squeeze investing theme, as evidenced by record consumer credit dark, with increasing delinquency rates for those as well as auto and student debt.

On this episode of the Cocktail Investing Podcast, we focus on the growing headwind for the economy and retail that is associated with our Middle-Class Squeeze investing theme. Consumers, especially those associated with our Aging of the Population investing theme, have racked up record credit card debt over the last several years, and it’s beginning to weigh on their ability to spend. This has reignited a retail apocalypse as the number of announced brick-and-mortar store closings reignites following disappointing holiday sales and same-store comp sales and the continued shift to digital shopping that is part of our Digital Lifestyle investing theme.

On the podcast, we talk about which retailers are benefiting from the Middle-Class Squeeze tailwinds, which means vibrant same-store comps and opening more locations in the coming months. In addition, we run through the latest economic data and share why we’ll be paying close attention to insider selling activity between now and the end of March.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.