The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world.
In today's edition, Austin discusses the race that only consumers will win, and that's the race to the lowest price. To move products and grow top line, companies are slashing their prices -- and their margins in the process. It's a game where many retailers will be pushed to below 2% margins in the future just to survive.
Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Amazon.com, Aeropostale, Best Buy, and Costco Wholesale and has the following options: long JAN 2014 $10.00 calls on Aeropostale, long JAN 2014 $15.00 calls on Aeropostale, and long JAN 2014 $20.00 calls on Aeropostale. Motley Fool newsletter services recommend Amazon.com and Costco Wholesale. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.