The page you are looking for is temporarily unavailable.
Please try again later

Money Traditional Retailers May Be Suffering But This Stock Will Soar

21:48  19 june  2017
21:48  19 june  2017 Source:   fool.com

Traffic closed on Highway 831 south of Boyle following head-on collision between two semi-trucks

  Traffic closed on Highway 831 south of Boyle following head-on collision between two semi-trucks Traffic closed on Highway 831 south of Boyle following head-on collision between two semi-trucksA 26-year-old man from Edmonton was extracted from his vehicle and flown to an Edmonton hospital by STARS air ambulance after a head-on crash near Boyle.

It isn’t only Sears that is suffering . The company has soared by 207% since first going public on the NYSE in late May 2015. That may sound like an incredible figure, but there is still phenomenal growth ahead.

The Internet sector may be a new game in 1999, but that doesn't mean it'll be any easier to follow. '.com' mania. As Internet stocks have soared , investors have notoriously ignored fundamentals in favor of hype, especially when it Traditional retailers flocked to the 'Net. The supply is steadily increasing.

  Traditional Retailers May Be Suffering But This Stock Will Soar © Provided by Fool

Retailers are under considerable pressure as the industry undergoes a massive transformation precipitated by the advent of e-commerce. The latest in a slew of bad news for the industry is that deeply embattled Sears Canada Inc.(TSX:SCC) has stated that it doubts it can continue as a going concern. This forms part of the overall malaise that has hit traditional brick-and-mortar retailing, which has claimed a range of victims in recent years because of shrinking margins and, most significantly, growing e-commerce sales.  

Now what?

Many main street retailers are feeling the pinch because they lack the ability to compete with e-commerce retailers who have far lower expenses, higher margins, and a global reach. Losses are mounting across the industry as consumers transition to making more purchases online from the comfort of their own homes.

Dollarama Inc.: Is it One of the Best Growth Stocks Around?

  Dollarama Inc.: Is it One of the Best Growth Stocks Around? There are signs that Dollarama Inc. can keep growing at a rapid rate.That company is budget retailer Dollarama Inc (TSX:DOL). Despite that the rapid growth of e-commerce is creating considerable headwinds for traditional retailers, Dollarama continues to innovate and grow.

As of Friday, May 19th, we now have Q1 results from 33 of the 42 retailers in the S&P 500 index. See these stocks free >>. Handicapping the Q1 Earnings Season. U.S. Aerospace & Defense to Soar on Budget, Air Traffic.

The Amazon stock price has skyrocketed 237.49% in the last five years because of Amazon's dominance as an online retailer . After all, traditional bookstores can suffer from excessive stock and large operation costs. Even though AMZN may be down in the short term, we believe the

The impact of e-commerce on traditional brick-and-mortar retailing and the pain being felt by industry participants is evident in the latest results from Sears.

For the first quarter 2017, revenue declined by 15% year over year, the company’s gross margin fell by 5.6%, and its net loss more than doubled $144 million. Management has said that the business could very well fail in coming months because of recurring losses and declining revenue; cash and forecast cash flow is insufficient to meet the company’s financial obligations.

It isn’t only Sears that is suffering.

Hudson’s Bay Co.(TSX:HBC) saw retail sales fall by 3% year over year for the same period, and its net loss grew by more than double to $217 million.

Bob Barker is OK after suffering fall, checking into hospital

  Bob Barker is OK after suffering fall, checking into hospital Game show legend Bob Barker is OK after suffering a fall and hitting his head at his California home. The former "The Price is Right" host, 93, was briefly hospitalized last week at the Cedars-Sinai Medical Center in Los Angeles after he slipped in a bathroom at his Hollywood Hills residence, a rep for Barker confirmed to the Daily News. Barker experienced some discomfort and was taken to the Emergency Room by his housekeeper, but was released several hours later after doctors determined he was doing well. A rep for Barker said the accident wasn't as serious as the one he suffered two years ago, when he slipped on the sidewalk outside his Southern California home and hit his head. Barker received stitches on his forehead following that accident, during which he also injured his knee. The veteran entertainer and animal rights activist has battled a series of health issues over the years, including strokes in 1991 and 2002, as well as several mild bouts with skin cancer. Barker retired from "The Price is Right" in 2007 after hosting the show for 35 years. Barker, who spent more than 50 years as a TV host overall, won 19 Emmys during his career — including 14 for outstanding game show host.

Traditional retailers may be suffering , but some have stronger online sales than you might think. Omnichannel has become a buzzword in retail , the notion that retailers must be proficient in both the traditional retail channel as well as the digital one.

And with the shutdown over, at least temporarily, the stock market can get back to doing what it's done since the start of the year: rally. Amazon.com (AMZN) opened its first cashier-free store today--hooray!--but the retailer may be less of a threat to grocery stores than it first appeared following its

Because of those ongoing losses, management has taken a knife to Hudson’s Bay’s dividend, slashing it by more than a third to $0.06 per share for 2017.

I don’t expect the situation to improve for traditional brick-and-mortar retailers any time soon.

You see, e-commerce is expanding at a rapid clip.

According to Statistics Canada, by December 2016 the value of e-commerce sales when compared to January of that year had more than doubled to $1.7 billion, which represented 3.4% of all retail sales. For 2017, analysts have forecast that Canadian e-commerce sales will expand by 9.9% and keep growing at roughly that rate year over year for the next four years.

Globally, the rate of growth is projected to be in the double digits with total e-commerce retail sales expected to top US$4 trillion by 2020. That will be a boon for e-commerce specialists such as Amazon.com, Inc. and eBay Inc.

Sears Canada stock plunges on news report

  Sears Canada stock plunges on news report TORONTO - Sears Canada's stock has plunged this morning following a news report that it's preparing to seek bankruptcy protection within weeks. The shares (TSX:SCC) fell 25 per cent to 60 cents on the Toronto Stock Exchange shortly after the open Wednesday. The stock had already declined from $1.14 on June 12, prior to a company warning that there was "significant doubt'' about its future and that it could be sold or restructured. Sears Canada SCC

Macy's Inc. (M) is the poster child of a suffering retail chain stuck in dying malls and downtown areas across the U.S. According to data from Foursquare, which has tracked more than 10 billion check-ins, the end is not nigh for traditional retailers . Western Digital Stock Could Soar Another 27%.

In sympathy with Macy's and KSS, a number of traditional retailer 's stock prices also fell including Many of the landlords owning the real estate occupied by these stores also suffered stock price declines The charts above may be optimistic with respect to future shares of traditional retail sales.

So what?

The growth in e-commerce will also underpin further spectacular growth from Canada’s latest success story, Shopify Inc.(TSX:SHOP)(NYSE:SHOP). The company has soared by 207% since first going public on the NYSE in late May 2015.

That may sound like an incredible figure, but there is still phenomenal growth ahead.

Not only does the forecast of double-digit growth of e-commerce sales globally bode well for its growth prospects, but Shopify’s unique value proposition means that it has very little direct competition. It operates globally, providing a scalable solution for businesses seeking an online presence that allows them to establish, operate, and manage sales across multiple channels, including the web, social media, and physical stores.

For the first quarter 2017, monthly recurring revenue grew by 62% year over year, and gross merchandise volume surged by 81%. This saw gross operating profit surge by 80% to $72 million for the quarter. 

It is clear that Shopify has yet to complete its growth phase, and that the projected explosion in e-commerce will be a powerful tailwind for the company. Even after its already stunning threefold gain, I expect its shares to continue appreciating at a solid rate.

Why credit cards fees might be on the rise

  Why credit cards fees might be on the rise Retailers might pass on higher fees to consumersThe benefits a cardholder receives usually come with a cost to the merchant because the credit card companies charge retailers to use them, and they charge more when customers use the fancier premium cards. Now we need to be prepared for that charge to get passed on to you and me. In separate recent class action lawsuit settlements, Visa and MasterCard have agreed to allow merchants to levy a surcharge on premium-card customers.

Amazon’s aggressive moves to get more people hooked to its Prime subscription service and expansion of its same-day delivery options means traditional retailers will struggle to keep pace, let along start to narrow the gap. Offers may be subject to change without notice.

Whereas traditional retailers like Macy's were tripped up by the West Coast port slowdown, off-price retailers like TJX benefited from the dislocation as it increased the availability of deeply discounted goods in the marketplace. He primarily covers airline, auto, retail , and tech stocks .

36-Year Old CEO Bets Over $300 Million on 1 Stock

Iain Butler, Lead Adviser of Stock Advisor Canada, recommended this little tech darling to thousands of loyal members last March... and those that followed his advice are up 127.7% (they've already made 2X their money!).

Not to mention this tiny Eastern Ontario company has already been recommended by both Motley Fool co-founders, David and Tom Gardner, because of its amazing similarity to an "early stage" Amazon.

Find out why Tom Gardner was recently on BNN's Money Talk raving about this company, and how you can read all about it inside Stock Advisor Canada.Click here to unlock all the details about his Canadian rule breaker!

Fool contributor Matt Smith has no position in any stocks mentioned. David Gardner owns shares of Amazon. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Amazon, eBay, Shopify, and SHOPIFY INC. Shopify is a recommendation of Stock Advisor Canada.

Life in jail for serial killer Canadian nurse .
A former nurse who confessed to murdering eight elderly residents who were under her care at retirement homes in eastern Canada was sentenced Monday to life in prison. Elizabeth Wettlaufer faced a possible 200 years in jail, but the judge in Canada's Ontario province opted for eight concurrent sentences with no parole for at least 25 years.The stout, bespectacled 50-year-old came forward and admitted having fatally injected her victims with insulin at two Ontario care facilities where she worked, often in charge of night shifts, between 2007 and 2014.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!