These 19 Retailers Have Survived the Retail Apocalypse
These 19 Retailers Have Survived the Retail Apocalypse
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The retail apocalypse isn't what you think it is. It's not internet-native companies putting brick-and-mortar chains out of business. That, of course, is happening, but many traditional retailers have managed to thrive despite consumers having more choices.
These are companies that have made changes. In many cases, that means going full omnichannel. In others, some retailers simply remain a draw to consumers -- that's specifically true for stores that offer bargains and changing merchandise that delivers a "treasure hunt" effect.
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1. Best Buy
Best Buy, for a time, looked like it would be one of the first casualties of the retail apocalypse. It was being used as a showroom where consumers would come to its stores, look at items, and then buy them online from digital retailers.
By focusing on service and offering a full omnichannel model, the retailer turned that around. The company also lowered prices on some items while making its stores easier to shop in.
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2. Walmart
Walmart could have done nothing. It's big enough that it could have limped along as a mostly brick-and-mortar chain. Instead, it bought Jet.com for $3.3 billion, installed its visionary CEO Marc Lore as its digital boss, and made massive investments in delivery.
Now, Walmart is a leader in the digital space along with having a huge network of stores. That leaves the company incredibly well-positioned for whatever consumers want.
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3. Target
Target struggled for a few years, but it has rebounded nicely. The company invested in its delivery infrastructure buying Shipt to facilitate same-day delivery. The company has also remodeled many of its stores and rebuilt its merchandise around company-owned house brands.
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4. Costco
Costco may be the retailer that has had to change the least due to the retail apocalypse. The membership-based chain has expanded its website and added delivery options, but its core offering remains deals on bulk items at its no-frills warehouses.
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5. Dollar General
Dollar General adds about 1,000 stores each year. Each one serves the local community and the chain has thrived regardless of the economic condition for other retailers.
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6. Sam's Club
Sam's Club has struggled a bit more than its chief rival, Costco, but the Walmart-owned chain is here to stay. Consumers still want value and they love the treasure-hunt aspect of shopping in warehouse clubs.
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We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.
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7. Five Below
Five Below took the concept of a dollar store and advanced it. The chain sells items that cost less than $5 (though some of its locations have sections dedicated to higher-priced extreme-value items). It has thrived and has been steadily growing despite the struggling economy for retailers.
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8. Ulta Beauty
It's hard to buy makeup online, and department stores, most of which have makeup sections, have been closing. That created an opportunity for Ulta Beauty, and the company has taken advantage by steadily growing its retail footprint.
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9. CVS
While other pharmacy chains have struggled, CVS has thrived. The retailer has done that by modifying its model and putting a greater focus on health. That has included getting rid of cigarettes from its stores, adding clinics to many locations, and rolling out its HealthHUB model which offers shoppers concierge-like help with their healthcare needs.
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10. T.J. Maxx/Marshalls/Home Goods
Consumers still like deals and they still like hunting for them. That has put the TJX Companies in an excellent position. All three offer great prices along with the entertainment factor of consumers never knowing just what they might find.
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11. Ross Dress for Less
Ross Stores has been another retailer that has grown by offering strong value and a treasure-hunt aspect to consumers. The chain has thrived for the same reason as TJX Companies and the warehouse clubs on this list -- customers want discounts, and they want the quasi-entertainment offered by never knowing what they may find.
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We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.
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12. lululemon athletica
People like expensive yoga pants. That's an oversimplification, but Lululemon Athletica has been a fast-growing retailer despite the problems other mall-based chains have faced.
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13. Apple
Apple stores produce some of the highest returns per square foot in all of retail. The company has been very smart about its retail locations and has selectively moved some from struggling malls to thriving lifestyle centers.
ALSO READ: Apple's Services Business Could Be Worth $650 Billion by Next Year
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14. Home Depot
While Home Depot has a flourishing website, much of its inventory is large and it makes sense for contractors to pick it up. Regular consumers who shop at the chain generally want to see what they're buying because a light fixture or some cabinets may look very different online than they do in person.
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15. Lowe's
Lowe's has struggled compared to Home Depot, but it's still booming. The chain has been working to figure out exactly what its retail footprint should look like, but those are small course corrections for an otherwise strong business.
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We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.
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16. Burlington Stores
As we've already discussed, stores that offer low-cost merchandise and a treasure hunt for its customers have thrived. That's what Burlington Stores does, and while the chain has a lower profile than Marshall's or Ross, it's still growing despite the problems many other retailers are having.
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17. RH
RH, formerly Restoration Hardware, has done well by using a non-traditional retail model. All of its items are delivered -- its stores sell nothing. Instead, these locations serve as massive display rooms to show off the chain's pricey wares. (Some locations do have restaurants and/or coffee shops).
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18. Sephora
Part of LVMH, Sephora has succeeded for the same reason Ulta has done well. Makeup remains something that people want to see and touch before buying.
5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.
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19. Old Navy
While parent brand Gap has struggled, Old Navy has grown steadily. That's because the company sells affordable clothes that are also fashionable. It also has largely avoided malls which has limited its exposure to lower-tier shopping centers which are struggling.
ALSO READ: Gap Is Still In Bad Shape After Scrapping Old Navy Spinoff
Daniel B. Kline has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple, Home Depot, and Lululemon Athletica. The Motley Fool recommends Costco Wholesale, CVS Health, Five Below, Lowe's, RH, The TJX Companies, and Ulta Beauty and recommends the following options: long January 2021 $120 calls on Home Depot, long January 2022 $115 calls on Five Below, and short January 2022 $120 calls on Five Below. The Motley Fool has a disclosure policy.
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