Retail sales from December 2019 – December 2020 rose by 4.9%. This bodes well for retail stocks, though it’s worth checking that the share prices / announcements haven’t already accommodated this growth. Notably ASB’s analyst suggests that this pullback from Q3 data doesn’t give a positive outlook, but does suggest stability. Personally, I agree, but suspect that the over-all positive growth signs opportunities to outperform for particularly successful retailers, such as HLG.
In the same release of data, Stats NZ reported that:
The momentum of higher spending on motor vehicles continued into the December 2020 quarter with another solid increase of 12%… after the 13% lift in the September 2020 quarter.Stats NZ (Email), 23 February 2020
This bodes very well for stocks that are involved in the sale of vehicles, though again, it’s worth doing a little bit of research into whether this is now reflected in the share price, and of course if such stocks fit within your investment strategy.
Normally I’d do this research to determine if any such stocks look like a good “buy” right now (and publish it here), but I’m currently not in the position to buy stocks until after April; hence the lack of recent articles here.