If you follow the constant flux of new retailer slogans, it’s apparent how much the industry is changing. From Staples, Inc. to Target Corp., retailers are grasping at anything to reinvigorate their image and revitalize their sales. #-ad_banner-#But while individual companies like J. C. Penney Co., Inc. and Sears Holdings Corp. may be falling on hard times, the retail industry itself is not in such bad shape. The SPDR S&P Retail ETF (NYSE: XRT), which tracks a broad swath of the retail industry, jumped 6.5% in August… Read More
If you follow the constant flux of new retailer slogans, it’s apparent how much the industry is changing. From Staples, Inc. to Target Corp., retailers are grasping at anything to reinvigorate their image and revitalize their sales. #-ad_banner-#But while individual companies like J. C. Penney Co., Inc. and Sears Holdings Corp. may be falling on hard times, the retail industry itself is not in such bad shape. The SPDR S&P Retail ETF (NYSE: XRT), which tracks a broad swath of the retail industry, jumped 6.5% in August as retailers reported second quarter earnings that were not as bad as feared. But there is one industry that depends on sales at retail establishments, especially the big-box stores like J. C. Penney, for its profitability. This industry is plagued by overcapacity and a dangerous trend toward low-quality assets. Worse yet, some of the weakest in the industry pay yields of up to 5% and income-hungry investors may be tempted to rush in before they know what they are buying. I am talking about the neighborhood shopping mall and the real estate investment trusts,… Read More