Sears is another traditional retailing giant facing hard times. The corporation’s shrinking footprint gives way for companies to capitalize on the soft-line and hard-line retail categories, Dunn said.
“I think, on the soft-line side, Macy’s has good overlap with Sears and TJX also has strong overlap,” she said. “On the hard-line side I think you’re looking at Home Depot as being the biggest opportunity, as well as Walmart.”
Companies and experts want to capitalize on what they see is the best consumer market in 10 years, which Dunn said has left some people nervous and the market skittish.
While every retailer won’t benefit equally, she expects good consumer news for the holiday shopping season. The National Retail Federation projects holiday retail sales to touch $720 billion, a 4.8 percent jump from 2017.
Specifically, Dunn thinks Target, Kohl’s, Ulta, Lululmeon and TJX will benefit the most.
“What I’m looking for is companies that have strong momentum, the wind at their back, assortments that are right for the holiday as well as valuations that aren’t too far out of the range,” Dunn said.
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