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What to Look for in Retail Stock Investments

Retail Stock Investments pic
Retail Stock Investments
Image: investopedia.com

A former managing director with CRT Sterne Agee and JPMorgan Chase, Chuck Grom functions as a managing director with Gordon Haskett Research Advisors in New York City. Throughout his career, Chuck Grom has played an integral role in guiding investment strategy, particularly in the retail sector.

When it comes to investing in retail businesses, many successful investors start by identifying fast-growing segments and following trends within those sectors. Home improvement stores have boomed in the wake of low mortgage rates, for example, while the Affordable Care Act has provided a boost for pharmacy chains.

Because e-commerce plays such a central role in the lives of most consumers today, it is important to consider the impact of online sales on the performance of a retail business. Online giants such as Amazon have led to the demise of department stores and brick-and-mortar bookstores, but not all of the news is bad; retail companies such as Walmart have experienced considerable success with online grocery pickup programs, while restaurants and home improvement stores are all but immune to the e-commerce creep.

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Digital Trends Drive Successful Retail Strategies

 

Gordon Haskett Research Advisors pic
Gordon Haskett Research Advisors
Image: gordonhaskett.com

Based in New York, Chuck Grom has a financial analysis background with companies including Deutsche Bank and JPMorgan. In March, 2017, it was announced that Chuck Grom had joined Gordon Haskett Research Advisors (GHRA) as managing director and would focus on building the company’s consumer boutique services and setting in place retail sector coverage.

As reported in Forbes, a number of emerging trends in the retail sector are driving transformation, with winners increasingly defined by their ability to seamlessly integrate the latest technologies. With the number of contactless cards expected to double over the next four years, one major change centers on growth in the mobile wallet sphere.

At the same time, access to products is being democratized, with social media and mobile marketing and branding strategies coming to the fore. This promises to level the field for smaller, niche retail brands that leverage the digital marketplace effectively. In tandem with this, millennial consumers and aging baby boomers alike have a growing appetite for personalized shopping experiences. This relatively affluent market space may favor the attention to quality and detail that smaller businesses are best positioned to meet.