Many brick-and-mortar retail stores have not done well lately. In this video, Fool analyst Austin Smith describes how the home furnishings sector has actually performed nicely and will likely continue to do so. A need for 500,000 new homes will drive the demand for TJ Maxx, Bed Bath and Beyond, and Pier 1 Imports. Stores that offer value savings to customers will likely outperform since the economy remains weak. Another attraction to this niche: Home furnishings are Amazon resistant. People want to see and feel what they're buying before buying it.
Austin Smith has no position in any stocks mentioned. The Motley Fool recommends Williams-Sonoma. The Motley Fool owns shares of Tempur-Pedic International. 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.