Excerpt from the Wall Street Journal quoting DataTrek’s Nick Colas:
…. “We all left retail for dead three months ago,” said Nicholas Colas, co-founder of research firm DataTrek. Yet there are reasons to believe the retailers that survive this year have upside in the years ahead, he said…
…In essence, what 2020 did was force a round of consolidation within the retail industry that was years overdue, DataTrek’s Mr. Colas said. Although painful for the companies that went out of business and employees who lost their jobs, for the survivors, it represents a chance to compete for market share.
Consolidation is also good for investors, Mr. Colas said. “You always want to own an industry coming out of a recession that’s gone through a significant consolidation,” he said. “It’s very painful, but as far as what it means to the survivors, it’s a positive”….
Read the full article here on the WSJ!