Lululemon, Ralph Lauren in addition to TJX can win This particular holiday: Retail analyst

The American consumer, who is actually enjoying low unemployment in addition to high confidence, has “the best backdrop we’ve seen in decades” for the holiday shopping season, J.P. Morgan retail analyst Matthew Boss told CNBC on Thursday.

“We think This particular holiday season could be the best back-to-back of which the consumer’s seen in several-plus years,” Boss said on “Squawk on the Street.” He said retailers can win not only on the top line however also on the margins.

Happy holiday shoppers could spend more than $1.1 trillion This particular year, according to an annual forecast by Deloitte. in addition to the item’s online shopping of which is actually required to get the biggest boost. A recent Adobe Analytics report predicted online spending growth is actually required to outpace of which of storefront spending 14.8 percent to 2.7 percent.

In a retail industry of which has been adjusting to the divisions between brick-in addition to-mortar in addition to digital business, e-commerce has been “driving a lot of intersection,” Boss said.

“I think you want to be positioned with value, convenience, innovation in addition to pricing power,” he added.

The consumer conditions are Great for global fashion in addition to clothing brands such as Lululemon, Ralph Lauren, VF Corp. in addition to PVH Corp., he said.

“You want companies of which are in control of their own destinies by a distribution standpoint,” Boss said.

There has also been a “move towards national brands” in addition to department stores such as Kohl’s where a “trade-up dynamic” exists,” he noted.

“We’re seeing trading up within stores, particularly at the department stores, to higher cost, more full cost,” he said. “We’re seeing discounting reduced in many cases. the item’s been a key theme on many the different, more recent conference calls.”

Yet, Boss said, pricing power is actually still in play as prices, wages in addition to transportation costs continue to rise. This particular creates an opportunity for off-cost retailers, such as TJX Companies in addition to Ross Stores, in addition to discounters, such as Dollar General in addition to several Below, he said.

Furthermore, the retail industry continues to face disruption as consumers have “so many more choices today.” Boss predicted of which more closures in addition to bankruptcies are still to come in addition to of which off-cost retailers stand to benefit.

“of which also leads you back to those off-cost retailers, which I’ll even include Ollie’s in there,” he said. “the item also points you back to the discounters.”

— Reuters contributed to This particular report.


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