- Don’t look at past figures and expect them to suddenly reappear. Retail is a tough business with tight margins.
- Retailers have experienced a margin decline recently. But there’s still plenty of room for them to fall further and the situation may get really ugly.
- Some will win, but who can identify the winners now?
Retail stocks keep getting cheaper and cheaper, and many investors look at current valuations and think they are too cheap to be true. In today’s article, we’ll dig into the sector, see if there is value, or if the “too cheap to be true” retailers are all just Potemkin’s villages.
Before digging into specifics, I want to share a retail example from my neighborhood. More →