This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Retail Report Card: Sales Growth Is Resilient for the Second Half

Stocks in this article: JWN WMT

NEW YORK (TheStreet) -- Despite the outlook from economists stating retail growth is faced with challenges the remainder of this year, retail sales growth will still come out strong for investors. A peek ahead looks at what may be the next key drivers of retail, economic growth, its challenges and opportunities.

American consumers are not likely to drive economic growth. Economists state that retail growth is still faced with challenges the remainder of this year however with higher income rates, consumers are expected to spend more for this year, strengthening the economic recovery.

Luxury retailer Nordstrom (JWN - Get Report) has been making significant moves right to the top in the first half of 2014. The chain saw a rise in sales due to serving the higher-end consumer market, while Wal-Mart (WMT - Get Report) which caters to low-and middle-income households had remained cautious resulting in the retailer experiencing weakened sales.

Why Walmart Still Has 'Significant' Opportunity Online

Which Retailers Are Leading the Digital Race?

5 Retail Companies That Outperformed in 2014

Stronger sales growth is expected for retailers toward the end of year. With back to school and holiday sales still ahead, customers have adapted to new technologies and retailers are pressured to keep up with the pace.

According to Deloitte's holiday survey, 68% of smartphone owners and 63% of tablet owners plan to use their devices for holiday shopping.

"Retailers should continue to focus on and invest in understanding the customer psyche and leverage innovation to drive loyalty and customer engagement," said Alison Kenney Paul, vice chairman and U.S. Retail and Distribution leader, Deloitte LLP in Deloitte's 2014 outlook on retail.

Investors are expected to take notice on disruption of trends in the retail industry until the remainder of the year. With the customer changing at an even faster rate, retailers are working to deliver personalized experiences through omnichannel.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs