Store-based sales dropped $1.2 billion, while online sales increased $150 million. The media is going to highlight the increase in online sales. But remember, online sales represent only 6% of total retail sales. The plunge in brick-and-mortar sales was nearly 10x greater in total dollars than was the increase in cyber sales.
The bottom line is that consumer is dead on arrival. Stagnating nominal wage growth, decline real (inflation-adjusted) median household income and skyrocketing non-discretionary expenses are eating the middle class alive. Throw in the huge increase in Obamacare premiums and it’s like throwing gasoline into a bonfire.
The retailer stocks are going to get crushed, regardless of what happens with the five stocks used by the Fed and the banks to keep the overall S&P 500/Dow indices propped up (Facebook, Amazon, Netflix, Alphabet (Google) and Disney).
Click on the image or here – Short Seller’s Journal for two great ideas to short the retail stock sector