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Wal-Mart, Costco, Kohl's Among Retail Winners, Analysts Say
New York, Jan. 18 (Bloomberg) -- Wal-Mart Stores Inc., Costco Wholesale Corp. and Kohl's Corp. will be among the most successful retailers five years from now, a panel of analysts said at a retail-industry convention.
Companies with strong name recognition among shoppers and aggressive plans for expansion and Internet commerce will outperform the competition, the analysts said.
While discount chains dominated the list of picks, State Street Research & Management analyst Eileen Leary also chose Best Buy Co. Inc., Staples Inc. and Home Depot Inc. George Strachan, an analyst at Goldman, Sachs & Co., named Dayton Hudson Corp., Nordstrom Inc. and Federated Department Stores Inc. in addition to Wal-Mart, Kohl's and Costco. Other department-store companies may lag the industry, he cautioned.
''None of us would be surprised to see a major mall anchor disappear in the next 10 years,'' Strachan said, declining to name which companies could fail.
The panel was part of the National Retail Federation's annual convention in New York.
Among Internet retailers, Morgan Stanley Dean Witter analyst Sharon Pearson pegged Amazon.com Inc. and Dresdner RMC analyst Joseph Ziolkowski chose online grocer Webvan Group Inc. as a ''long shot.'' Pearson also listed Gap Inc., owner of the Gap, Old Navy Clothing Co. and Banana Republic chains, as a pick.
The analysts questioned the prices investors have been willing to pay for shares of Internet retailers, many of which have yet to turn a profit.
''I've been amazed by the market's tolerance for economic models that seem to make no sense whatsoever,'' Strachan said. |
