f the plight of brick-and-mortar retailers was an apocalypse before the pandemic, it’s hard to know what to call it now.
Much of the retail sector is facing an unprecedented threat from COVID-19, and bankruptcies in the sector continue to roll in. Ascena Retail Group, the parent of Ann Taylor and Lane Bryant, joined the Chapter 11 club last week, saying it would close up to 1,600 stores as part of a restructuring plan.
Other companies that have sought bankruptcy protection include J.C. Penney, Neiman Marcus, J.Crew Group, Tuesday Morning, and GNC Holdings, while others — Zara, Men’s Wearhouse parent Tailored Brands, and H&M — have promised to close hundreds of stores.
While the crisis is a disaster for the apparel retail industry as a whole, the store closings, which could reach 25,000 this year according to Coresight Research, will put billions of dollars in market share up for grabs, setting up a sizable opportunity for businesses that can outlast the crisis. Three stocks that look well-positioned in this environment are Stitch Fix (NASDAQ:SFIX), Target (NYSE:TGT), and TJX Companies (NYSE:TJX), the parent of TJ Maxx, Marshall’s, and Home Goods.
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Source: Fool