Discounters and chain stores that offer more consumer value will do better in a tighter economy than mid-level and high-end stores, right?
You should chime in to encourage or dismantle this argument, as the Wershovenist Pig will soon have dollars riding on this sort of abstract thinking.
To this end, he now has an analysis of Wal-Mart vs. Target which you'll no doubt find edifying.
1 comment:
To the extent the thesis relies on people continuing to purchase necessities while cutting back on the unnecessary, I would be curious to see a comparison of margins across those broad classes of goods.
I'm skeptical, and if things look to be getting much worse will probably move into large companies with strong, sustainable dividends rather than the retailers.
But then again I mostly lose money...
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