Retail investments offer little value

Intelligent Investor

Independent Financial Research

Retail investments offer little value. Retail has always been a fast changing industry. Trends and fashions can evaporate just as quickly as they arrive. You're at the mercy of currency movements, low barriers to entry, fickle discretionary spending and large fixed costs. The influx of global brands to Australia and online competition has only made things harder. And now traditional retailers are up against an army of online competition. It's not just the shop down the road they need to keep up with - the internet has pegged almost every retailer on earth against each other. And without the added costs of a bricks and mortar storefront, online retailers have a distinct advantage. The only retailer on our Buy list is The Reject Shop for reasons explained in The Reject Shop: The good, the bad and the catalyst and because it's somewhat insulated from online competition. But even this company posted a terrible first-half result, causing us to lower our price guide and portfolio limit. (VIEW LINK)


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Independent Financial Research

Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...


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