Consumer Retail Apocalypse: SHLD, HGG, JCP, M, GNC, RH, ODP, SPLS, CBK, BONT
HOFFMAN ESTATES, ILLINOIS - Outside Sears (SHLD) HQ there's a wicked chill in the air and the ghastly odor of despair. Sears is the most glaring example of what has become of the brick-and-mortar retail industry in the United States and around the world. With online sales skyrocketing and impending drone delivery, can big box retail survive?
Retail Crashes . . . Another SHLD Store Dies
1. Sears (SHLD) - The poster child of the antiquated consumer retail big box store, Sears is heading for serious trouble. Watching SHLD charts is kind of like watching a really boring low-budget disaster movie on the Syfy channel. Amazon (AMZN) is a threat to anyone who sells anything, but the wave of destruction the cloud giant consumer retailer has wrought upon Sears is legendary. Empty parking lots, terrible customer service, crappy store design and other problems make this once proud consumer retail chain a likely candidate for bankruptcy at some point in the future. One of retail's heaviest and sharpest knives since the Great Recession.
You down with HGG? Yeah you know me!
2. hhgreg (HGG) - When you bring up hhgreg in a discussion the likely response you'll get is a blank stare. This middling hodgepodge of consumer electronics, appliances and furniture is utter junk. In fact, if you head into your nearest hhgreg (it might be hundreds of miles away) you'll see that it's more like an electronics trading post in a dystopian science-fiction movie as opposed to a legitimate store. Over the past year the share price has been relentlessly savaged. I don't even think that the AI that powers the dominance of Amazon even knows HGG exists.
A JC Penney (JCP) For Your Thoughts On This Stinker
3. JC Penney (JCP) - There's a real debate as to which big box consumer retail store is the worst of the big boys - JC Penney or Sears. It's not much of a contest, only because SHLD is so bad that JCP looks relatively good in a side-by-side comparison. JC Penney has a fine lineage and there are many people who have fond memories exploring their expansive stores. However, JCP is collapsing along with many retailers thanks to AMZN and other online shopping opportunities. Before the Great Recession, shares of JCP traded at north of $75 per share. Today, the company's stock is scuffling well-below $10 and falling.
Macy's (M) Got Gray Days Ahead
4. Macy's (M) - Macy's may still have some staying power as many people still like to shop for higher-end items in person. Macy's tries to cater to brick-and-mortar shoppers, but the entire concept is going the way of rabbit ears on top of the television. From personal experience, their wedding registry services stinks it up something fierce. It's not in apocalyptic shape like SHLD or JCP, but give her time . . . she'll get there. In July of 2015, Macy's was riding high at over $70 per share. Things were looking rosy - and then there was a seismic shift. As of now, shares are trading under $30. Any takers?
GNC Holdings (GNC)
5. GNC (GNC) - Does anyone buy anything anymore at GNC? The overpriced purveyor of legal supplements used to fit very nicely in a niche that is being stampeded by online retailers. Anything you can find at GNC you can find cheaper on Amazon. While there will always be a place for this kind of store, the place is becoming more and more obsolete with each Flintstone vitamin sold. GNC has performed awfully since August of 2015, declining from $50 a share to under $10 per share today.
No Restoration For Restoration Hardware (RH)
6. Restoration Hardware (RH) - Restoration Hardware is sinking . . . fast. It remains to be seen if their stores have enough gaudy furniture that people will actually buy? Is there anything that will save this furniture store from a terrifying death? Amazon, Overstock (OSTK) and Wayfair (W) have played a part in the savaging of Restoration Hardware. Toward the end of 2015, RH was trading at over $90 per share. Today, the share price stands at under $27 and the bleeding might not be done.
A Lack Of Office Space For Office Depot (ODP)
7. Office Depot (ODP) - Is it a casualty of Amazon's dominance? Maybe to a point - but it's obvious that the big box office supply store is trending downward. With computers consistently replacing the need for various office supplies, ODP investors may find themselves in a binder of neglect. A little past the midway point of 2007, ODP stock traded above $30 per share. Since the Great Recession, it's been lodged in a channel under $10 and even hit .59 cents at one point during the great tanking of 2009.
No Longer A Staple, Staples (SPLS)?
8. Staples (SPLS) - As with its chief competitor Office Depot, Staples has kind of run its course. The once mighty office supply juggernaut championed by Mitt Romney and Bain Capital has seen better days. It's been locked in a really nasty downtrend since the beginning of 2015. There may be no office products at the end of the tunnel.
You Can't Take This To Christopher & Banks (CBK)
9. Christopher & Banks (CBK) - This specialty women's apparel retailer targeting 40-60 year old women has taken a big dive over the past year and change. It's likely that Amazon and other online retailers took some wind out of the companies semi-stylish sails and the profit out of hundreds of their stores. In September of 2014 CBK hit a nasty double top on the weekly chart and it's been chutes without ladders ever since. From the looks of things, shares of CBK could be heading south of a lonely buck.
Not a Bountiful Opportunity (BONT)
10. Bon-Ton Stores (BONT) - Fans of Star Wars: The Empire Strikes Back will be familiar with the Tauntan and chances are that most humans don't even know what a Bon-Ton is, let alone that it's a company that sells stuff in stores. At one point in time, just before the Great Recession, shares of BONT challenged $60 a share. For much of the past year and change, shares of BONT were sagging well below $2 a share. Not a good look.
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The Valley Report