As the holiday shopping season kicks off in earnest this weekend, it appears the discount retailers are best positioned to reap the greatest benefits. AMES is not specifically mentioned in this piece, but the trend of shoppers frequenting the discounters this shopping season bodes well for AMES' 4th quarter and year, IMO.
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Discounters delight
On the discount front, industry observes see sales growth continuing at a healthy clip as the American consumer fixes their sights on price tags.
Investors who own shares of discount merchants like Kmart (KM), Wal-Mart (WMT) and Target, owned by Dayton Hudson Corp. (DH), should make out well this year, as they are poised for 5 percent growth or better.
Pamela Rucker, of the NRF, said consumers in its recent mood survey indicated they will be doing most of their shopping at discounters this year.
"That's due to the consumers increasing emphasis on value for their dollar," she said. "While last year it was maybe quality of products, this year consumers do seem to have renewed interest in value. The discount segment of retailing will do very well this year."
The Deloitte & Touche survey found that nearly 80 percent of shoppers will visit a discount department store to do some of their holiday buying. That's up from 70 percent in 1997.
Wal-Mart spokesman Les Copeland said the company attributes its rapid growth rate to low prices and a larger selection.
He said Wal-Mart has added a new grocery department at selected locations, which has helped to make the store an everyday destination for shoppers. |
