Costco Wholesale Corp

Foot Locker (FL) has several key strengths. It’s the largest specialty retailer (XRT) of sporting goods in terms of US store count.

Target stock closed 14.1% higher on November 20 thanks to the company’s remarkable performance in the third quarter of fiscal 2019.

Margins in the food and staples (XLP) retail segment are slender. It’s important for Walmart (WMT) to keep a tight grip on the cost structure.

When you think of retail companies leading technological innovation, Walmart (WMT) might not be the first name that comes to mind. But it should be.

Target investors have a lot to celebrate in 2019. Stellar growth, a robust financial performance, and share buybacks have boosted shareholders’ returns.

Walmart stock has risen 27.1% and Target stock is up 62.6% YTD through September 24. Same-day fulfillment and delivery services have pushed their growth.

Given the sharp rise in Target stock, the upside could be limited. However, we expect Target to continue to post healthy comps and earnings growth.

As of June 21, Kroger (KR) was trading at a 12-month forward PE ratio of 9.9x. The company’s forward valuation multiple has fallen 5.4% since its first-quarter results on June 20.

Kroger (KR) stock underperformed the broader markets in the first quarter and fell 10.5%. In comparison, the S&P 500 rose 13.1%.

Amazon (AMZN) has been struggling due to slow revenue growth and higher investments in 2019 in hiring and capital spending.

Walmart (WMT) had impressive earnings in the first three quarters of fiscal 2019. Walmart beat analysts’ expectations.

The US dollar industry is highly concentrated and dominated by two major players, Dollar General (DG) and Dollar Tree (DLTR).

Walmart (WMT) is reshaping its international strategy, which augurs well for long-term growth. As competition heats up in the domestic market, Walmart is looking eastward to accelerate growth.

Costco (COST) continues to impress with its high earnings growth rate despite its continued focus on prices amid increased competition from Amazon (AMZN).

During fiscal 4Q18, Walmart’s US segment reported sales of $86.6 billion, up 3.4% on a year-over-year basis.

Amazon (AMZN) is raising its Amazon Prime membership fees for some subscribers.

Target (TGT) stock was trading at a forward PE ratio of 14.8x on January 9, 2018, which seems compelling when compared to the peer group average of 24.5x.

After reaching a lifetime high in October 2017, the ISM (Institute of Supply Management) non-manufacturing index fell 2.7 percentage points to 57.4%.

Target announced several customer-friendly initiatives that are resulting in higher sales. The company ramped up its delivery mechanism.

Walmart (WMT) reported sales of $123.2 billion in fiscal 3Q18, which easily exceeded analysts’ expectation of $121 billion, rose 4.2% YoY (year-over-year).

During the last reported quarter, the Walmart U.S. segment’s sales rose 3.3% year-over-year to $78.7 billion, reflecting a 1.8% increase in comps.

As competition heats up in the grocery business, Walmart (WMT) is leveraging its strong retail presence, which gives the company an edge over the competition.

Walmart (WMT) reported its fiscal 2Q18 results on August 17. Walmart’s adjusted earnings per share of $1.08 beat Wall Street’s estimate and increased 1% year-over-year.

In this series, we’ll explore the trends in consumer spending in recent months and try to shed some light on the retail sales data that will be released on July 14.

Consumer Discretionary Select Index sales, earnings, and dividends have grown at a CAGR (compound annual growth rate) of 6%, 7.2%, and 10.7%, respectively between 2012 and 2017.

American Express’s (AXP) Global Merchant Services segment is expected to see a marginal increase in its net income in 2Q17.

American Express (or Amex) (AXP) has entered into digital partnerships with Airbnb, Facebook (FB), and Uber in order to offset the revenue loss from Costco (COST).

The majority of analysts covering Target (TGT) are neutral on the stock. Analysts’ consensus rating on TGT was 2.9 on a scale of 1.0 (strong buy) to 5.0 (strong sell).

Dollar General (DG) operates dollar stores that offer a variety of inexpensive merchandise, including home products, seasonal products, consumables, and apparel.

Target (TGT), the third-largest mass merchandiser in the US, declared results for 4Q16 on February 28, 2017.

In 2Q16, mass merchandiser Target (TGT) reported a 7.2% decline in its top line to $16.2 billion. Target’s 2Q16 revenues were affected by lower traffic and higher variability in sales patterns.

Target’s (TGT) stock price fell 6.4% to $70.63 on August 17, 2016, after the company released its fiscal 2Q16 earnings.

In fiscal 1Q17, Walmart’s operating margin declined by about 40 basis points to 4.6% mainly due to a rise in expenses associated with the planned wage rate increase in the Walmart US and Sam’s Club segments.

Smart & Final stores have a smaller physical footprint than other warehouse clubs and grocery chains, but they offer a larger SKU selection.

The Fresh Market follows both competitive and differentiated pricing strategies.

Porter’s five forces model is used to assess the nature of competition and attractiveness of an industry.

Following the completion of the second-step transaction on December 31, 2014, Walgreens Boots Alliance reorganized its operations into three segments.

A National Bureau of Economic Research study has found that the evolution and growth of warehouse clubs have been the most significant influences on the retail sector over the last 15-20 years.

With the increasing focus on health and wellness, the organic food channel has grown at more than twice the pace of the conventional food channel.

Although Sprouts purchases from a large number of suppliers, the company is still dependent on these suppliers for a large part of their purchases.

Walmart (WMT) is a mass merchandiser. It’s the world’s largest retailer. It has over 11,100 stores in ~27 countries. It has a market cap of over $275 billion.

Advertising and promotional events from Unilever and PG’s home cleaners and a rise in the popularity of store brands pose threats to Clorox.

Whole Foods’ net margin was among the highest in its peer group in fiscal 2015. The 12-month trailing net margin for Whole Foods stood at 3.5%.

Whole Foods’ sales for fiscal 2015 earned $15.3 billion—a 8.4% rise over the previous fiscal year, and a 9.6% average rise over the past three fiscal years.

Whole Foods has only trailed Costco in per-foot sales metrics. Costco averaged more than $1100 between fiscal 2011 and fiscal 2015.

Organic products are no longer available solely at farmers’ markets and specialty stores but are now available at local and traditional grocery stores.

Whole Foods spends less on advertising and marketing than conventional supermarkets, relying on word-of-mouth recommendations and customer testimonials.

With 433 stores across the US, Canada, and the UK as of September 2015, Whole Foods has long been considered a synonym for organic and healthy food.

Kroger (KR) is a well-established player in the natural foods market. The company offers over 15,000 natural and organic food items.

Efficient supply chain management is vital to a retailers’ day-to-day operations. A good distribution network optimizes product freshness, reduces waste, and lowers costs.