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The ongoing challenges for department stores, which extend back more than a decade, keep playing into the hands of off-price competitors, UBS said. Despite woes at other retailers, TJX stands out as a resilient company well-equipped to avoid many of the industry's challenges. TJX 1Y mountain TJX's stock performance over the past 12 months. One factor keeping a lid on TJX's stock recently may be that it is trading close to its historical valuation, noted Chuck Grom, a consumer and retail analyst at Gordon Haskett. On the other hand, spending at department stores fell 3.7% in March after a 5.2% decline in February, according to Bank of America.
Persons: Jeff Marks, TJX, — TJX, Ernie Herrman, Chuck Grom, Gordon Haskett, Grom, TJX's, Corey Tarlowe, Tarlowe, Jim Cramer's, Jim Cramer, Jim, Jeff Greenberg Organizations: Companies, TJX Companies, Ross Stores, UBS, Burlington Stores, Nordstrom, Marshalls, Home Goods, CNBC, Loop, Jefferies, Bank of America, Universal, Getty Locations: Maxx, Port St Lucie , Florida
In collecting this data, the firm saw a deterioration in the Dollar General brand last year. As of Monday's close, Dollar General's stock is up more than 57% from a 52-week low of $101.09 reached in mid-October. Their research found that consumers felt the cleanliness of Dollar General's stores, a top five driver of satisfaction, lagged key peers Dollar Tree and Family Dollar, and fell 2% further in February. Until November, shoppers rated Family Dollar and Dollar General's product offerings more or less on a par with each other. In addition to Dollar General's own challenges, all dollar stores are likely being hurt by weaker spending among low income consumers.
Persons: Vasos, what's, Todd Vasos, Jeff Owen, Gordon Haskett, Chuck Grom, Grom, bode, Piper Sandler, Peter Keith, Keith, Morgan Stanley, Simeon Gutman, Gutman, Michael Lasser, Lasser, Matthew Boss, — CNBC's Michael Bloom Organizations: Dollar, DG, Occupational Safety, Health Administration, SNAP, UBS, JPMorgan
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWalmart is in the early innings of a multi-year reacceleration, says Evercore ISI’s Greg MelichEvercore ISI’s Greg Melich and Gordon Haskett’s Chuck Grom, joins 'Power Lunch' to discuss the bull case for Walmart.
Persons: Evercore, Greg Melich Evercore, Greg Melich, Gordon Haskett’s Chuck Grom Organizations: Walmart
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDollar General: Here's why Gordon Haskett upgraded the stock to buyChuck Grom, Gordon Haskett retail analyst, joins 'Squawk on the Street' to discuss Dollar General's new CEO, the performance of the dollar names with the degradation of the consumer, and more.
Persons: Here's, Gordon Haskett, Chuck Grom, Gordon
Dollar General 's latest leadership change could help re-stabilize the company and put it on track toward growth again, according to research firm Gordon Haskett. Analyst Chuck Grom upgraded shares to buy from hold in a Friday note. He also established a price target to $140, which implies shares could rally 37% over the next 12 months. Following Thursday's close, Dollar General announced former CEO Todd Vasos would be returning and replacing Jeff Owen as chief executive, effective immediately. "Taking these factors into consideration, we think Dollar General should undertake a significant margin re-set in 2024 to pave the way for a return to both comp and EBIT dollar growth in FY25 (and beyond).
Persons: Gordon Haskett, Chuck Grom, Thursday's, Todd Vasos, Jeff Owen, Owen, Grom, Vasos, — CNBC's Michael Bloom Organizations: Dollar General, DG
Richard Galanti, Costco Wholesale CFO Photo: Costco Wholesale Corp.“It takes time for changes to come through,” Mr. Galanti said. A company’s freight costs vary depending on whether they are fixed by contract for a period of time or based on spot-market rates that can change more quickly. The length of contracts as well as the company’s ability to renegotiate the terms of its agreements also affect the retailer’s freight costs, he said. These cost pressures will persist, as wages don’t tend to come down once they have gone up, Mr. Galanti said. Price increases have also hit food court items such as individual sodas and whole pizzas because of rising costs, Mr. Galanti said earlier this year.
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