Michael Brush: ‘Revenge travel’ is over. Shoppers are spending on goods again and these 3 retailers could benefit.

by | Oct 19, 2023 | Stock Market

With summer travel season winding down and holiday gift-giving season ahead, consumers are shifting their spending to goods from services. So, this is a good time to buy retail stocks. Corporate insiders certainly agree. They’ve buying at several retail sector companies, including the three highlighted below.  But first, more on that spending shift. “It’s time for goods to be good,” JPMorgan Chase economist Bruce Kasman wrote in a recent research note. “A broader rebound in global consumer goods spending is underway. The case for a rebound in global industry is building.” 

Kasman points to several signposts. For starters, supply chain disruptions continue to ease, which puts downward pressure on prices, making goods more attractive. Global auto sales bottomed last quarter. Orders for goods in general are up, around the world. Shoppers have increased spending at stores by a surprising amount. U.S. retail sales grew 0.7% in September compared to the month before, against an estimated 0.3% gain, the Commerce Department reported this week. Growth was strongest at miscellaneous retailers (up 3% vs. August), auto dealers (up 1.1%) non-store retailers (1.1%).  Putting these trends together, Kasman notes that he expects a …

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