Most retail experts believe Bed Bath & Beyond has one foot in a grave, and a visit to a couple of locations indicate a retailer under severe stress amid elevated discounting and slow-moving inventory.
Walmart Inc and Target Corp kick off retail earnings this week, and what the two biggest U.S. retailers say about consumers will likely set the theme for the rest of the sector and offer clues about the health of the U.S. economy. A decline in gasoline prices in recent weeks has eased some pressure on lower-income shoppers, but inflation is still running at a four-decade high. Both Walmart and Target saw big inventory builds during the first quarter and warned of a fall in earnings this year as consumers increasingly shopped for lower-margin goods such as food and fuel.
Aside from the movement of stock prices, investors may hesitate to take advantage of dividend stocks. Target (NYSE: TGT), Texas Instruments (TI) (NASDAQ: TXN), and Chevron (NYSE: CVX) could serve as excellent starter stocks for such investors.