Fake News Means These High-Yield Stocks Just Got Cheaper

The financial news media has been pushing the retail apocalypse belief for the last several years. It comes from the closing of numerous North American brick-and-mortar retail stores. The theory is that online retailing will take over most retail sales and that real estate retailing will continue into a death spiral.

Malls and shopping centers will become ghost towns of worthless real estate. The news reporting makes it seem like the collapse of bricks-and-mortar retailing is well underway. You may be surprised to learn, this is not the case, and traditional retailers are fighting back, and in many cases, winning.

Despite “losing” to online retailers for more than a decade, in 2019, online sales make up just 10% of total retail. Yes, 10%! The most optimistic forecasts have online getting up to 15% after another half-decade. Brick and mortar retailing will keep the majority of the spending dollars in the U.S.. More importantly, retailing companies are fighting back. One big push is for what is called experiential stores. This is from Storefront Magazine:

“As consumers choose to invest in experiences rather than products, retailers need to respond to meet the needs of their customers. Customers don’t want just to walk in and buy your product and leave because they could do this in the comfort of their own home. But by creating a more immersive retail experience, retailers can drive people towards their stores and ensure they leave not just with your products but also memories.”

It will be hard to pick out which retail companies will succeed with their experience-based sales effort. I am not even going to try. One way to invest in this trend is to own the real estate investment trusts (REITs) that help retailers promote their experiential approaches to giving customers memorable shopping trips.

With a REIT, you get a landlord that collects rent checks. If a single store or chain doesn’t make it in this competitive retail world, there are new companies popping up all the time that want to give customers a great experience and sell their hopefully awesome products.

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Disclaimer: The information contained in this article is neither an offer nor a recommendation to buy or sell any security, options on equities, or cryptocurrency. Investors Alley Corp. and its ...

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