FundKite CTO Alex Shvarts was recently quoted in a Forbes article written by contributor Adam Sarhan, “3 Reasons Retail Stocks Are Attractive.” The article discusses the reasons why retail is not dead and stocks are still a fine choice for investing, despite the recent decline in brick and mortar store sales.
It starts as follows…
“Retail stocks have been under pressure in recent years as consumers are buying online and moving aware from the tradition brick and mortar stores. Recently, hundreds of stores have closed recently but the ones that are able to survive have evolved and are emerging as leaders in a very strong space. Remember consumer spending makes up nearly two-thirds of the economy and we all know how much people love to shop.
“There are also long-standing companies revamping their branding. Take Staples – a company re-marketing itself but not necessarily as something completely new. They’re a veteran company with the right knowledge and experience – and they’re oning that. This kind of company poses less investment risk than another competitor with less clout in the industry. I spoke with Alex Shvarts, CTO of FundKite, a small business funding platform, who is bullish on retailers and stressed that strategy and approach are key. Alex said, “The market is strong and lifting most sectors, but before you invest in retail, you need to examine the specific type of retailer you’re investing in and how much risk you’re willing to take. Retail stocks should not be simplified as just retail, there are consumer discretionary vs consumer staples investments, profit vs growth, online only vs brick and mortar vs omnichannel. You could shop for where to invest for quite some time. Just like the brands are marketing their products to consumers, they are marketing their portfolios to investors as well.” Alex believes in the space and wants everyone to do their homework before blindly jumping in to anything.
“These are just a few reasons why retail stocks can easily move higher but the good news is the companies that survived the retail apocalypse are in a good position to thrive.”
The piece explains in more detail the three reasons to invest: 1) Stores are becoming destinations to “Amazon-Proof” their sales, 2) Stocks are immediate growth focused, ignoring those investing in online and internal transitions, 3) There’s a variety of options from slow but stable legacies to fast but risky startups. Read the article in full on Forbes by clicking this link. To learn more about investing in a business, read this article from FundKite.