New digital and e-commerce technologies have changed how people shop. Today’s consumers are more digitally connected than ever, and they don’t just shop online; they buy directly from brands. New specialty retailers have sprung up to meet these needs, and we think investors should take notice. These retailers sell unique merchandise that can’t be found at a department store or generalist website – independent fashion boutiques, local artisanal food markets, and other stores that focus on a particular niche or category of products. See Also:
Camping World Holdings (CWH)
Camping World Holdings Inc. is the parent company for an ecosystem of retail brands focused on outdoor recreation, including Camping World, Good Sam, Boats.com, and Overton’s. CWH’s brands are leaders in their categories, serving outdoor enthusiasts nationwide. Partners include more than 25,000 retailers, including parts and service dealers, and various government and commercial organizations. Headquartered in Lincoln, Nebraska, CWH has nearly 8,000 employees. CWH has two segments: Outdoor and Retail. Its Outdoor segment consists of its part World and Good Sam brands. The Retail segment consists of Boats.com and Overton’s brand.
Dick’s Sporting Goods (DKS)
Dick’s Sporting Goods, Inc. is a sporting goods retailer. The Company sells athletic equipment, fitness equipment, team sports equipment, and related apparel. The Company operates a chain of approximately 790 stores in the United States. It also uses an e-commerce Website (dickssportinggoods.com). The Company’s stores offer a selection of athletic equipment, fitness equipment, team sports equipment, and related apparel and accessories, including footwear, clothing, and accessories.
CarMax is the country’s largest retailer of used cars. It sells over 90% of its vehicles online and has a network of more than 200 stores across the country. Consumers love the convenience of shopping online, and with the added benefit of inspecting and test-driving a car before they buy, CarMax is a compelling choice.CarMax’s business model has proven to be highly profitable. The Company offers low prices, a great selection, and the added benefit of added protection for buyers. When customers buy a used car from CarMax, they know it has been thoroughly inspected and comes with a lifetime powertrain warranty.
Rent-A-Center, Inc. operates rent-to-own stores in the United States and Canada. The Company’s stores offer furniture, appliances, computers, software, accessories, and other merchandise, such as mobile phones, televisions, and sound systems, for rent to consumers who cannot obtain financing from banks or other traditional sources of credit. There are approximately 2,100 stores in the United States and Canada. The Company’s stores in the United States typically operate under the name Rent-A-Center and rent furniture, appliances, computers, software, accessories, and other merchandise, such as mobile phones, televisions, and sound systems. Its stores in Canada operate under the name Rent-A-Tron.
Specialty retail stocks can expose investors to a broad range of industries and products. We think the best specialty retail stocks to buy now are Camping World Holdings, Dick’s Sporting Goods, CarMax, and Rent-A-Center. We believe these stocks provide good exposure to the changing nature of retail, and we expect them to grow their earnings over the next several years.