Retail Stocks Diverge: Winners and Losers in the Post-Pandemic Market

Arguably, the U.S. consumer has been one of the biggest drivers of the economy since the end of the pandemic. Flushed with stimulus cash and a strong labor market, consumers have continued to open their wallets on a variety of discretionary items and staples. This has continued to drive earnings and profits at various retailers.

However, consumers may be finally beginning to close their wallets and purses.

Thanks to rising inflation and economic pressures, sales have continued to be mixed for the group. But some retailers are faring better than others. There are still opportunities in the industry and separating the wheat from the chaff has become ever more important for portfolios.