Yahoo Finance Video
Price shopping: How discount retailers stack up
As retail sales fell for the month of January, many on Wall Street are wondering if the strength of the consumer, that was seen in previous quarters, will remain. As consumers pull back from certain luxuries, will other parts of the retail sector be hit with pullbacks as well? Anthony Chukumba, Loop Capital Markets Managing Director, joins Yahoo Finance to discuss the changing habits of the consumer and where the consumer will continue to spend, and what investors should keep an eye on. When asked where consumers can still feel like they’re getting the best value for their dollar, Chukumba replies: “The low price leaders continue to be Walmart (WMT) on the brick and mortar side and Amazon (AMZN) on the e-commerce side. Having said that, a lot of the companies that I cover, they have kept their prices very, very competitive. So for example, you mentioned Dollar Tree (DLTR). Dollar Tree owns Family Dollar and there’s Dollar General (DG) as well, and what we have found is that Family Dollar and Dollar General prices, they’re not quite at price parity with Walmart, but they’re usually sort of a low single-digit to mid-single-digit percentage higher than Walmart, and that’s all they kind of need to be because it is a different purchase occasion.” For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor’s note: This article was written by Nicholas Jacobino
