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CNBC: Home Improvement Among Few Merchants Thriving Amid Retail Gloom

Image: CNBC: Home Improvement Among Few Merchants Thriving Amid Retail Gloom
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By    |   Saturday, 13 May 2017 10:37 AM

It's not all blood on the streets for retailers: There are reportedly some merchants posting gains, such as those in the home improvement and other sectors of the $400 billion industry.

Those stores are thriving while retailers including Macy's and J.C. Penney are struggling with shrinking sales.

“The biggest winner, of course, is the ‘nonstore’ category that includes online retailers like Amazon. That sector's growth has largely come at the expense of the general merchandisers who are seeing their mall traffic dry up,” CNBC reported.

“But nonstore retailing still makes up a relatively small share — about 10 percent — of the more than $400 billion in annual retail sales,” CNBC reported.

“And some retailers are much less vulnerable to the shift online. Gasoline stations saw sales jump more than 12 percent in the last year, in part because of a rebound in gasoline prices. Retailers of building materials and garden supplies have benefited in the last year from a strong housing market,” CNBC said.

“Until recently, car dealers enjoyed steady sales. But vehicle sales have flattened in the last few months. Sluggish sales are prompting dealers to cut prices and offer cash back promotions to lure customers to their showrooms,” CNBC reported.

However, not all experts would suggest investors jump into retail stocks.

Entrepreneur, stock trader, television personality and author Adam Mesh told Newsmax TV that not every section of the stock market is a safe bet just because investors have enjoyed a bull run since Donald Trump’s presidential victory.

“It's hard to explain how it got here. All of last year seemed surreal in how we went up and then the expectation was going into the election if Trump became president that we'd go down, but then we just continued higher and now it seems that everybody is bullish,” he told Sunday’s “The Income Generation Show.”

“Tech has remained strong, it had a good first quarter that it's finishing up right now and with innovation and growth, tech seems a nice place to be not only for stability but also for upside,” said Mesh, who starred in the 2003 NBC show “Average Joe.” Mesh starred in the spin-off "The Average Joe: Adam Returns."

“The sector I'd stay away from is the retail sector,” he advised.

But he cautions savvy investors to not just hop online and start binge-buying individual stocks.

"The Income Generation" airs on Newsmax TV every Sunday at 10 am ET.

(Newsmax wires services contributed to this report).

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It's not all blood on the streets for retailers: There are reportedly some merchants posting gains, such as those in the home improvement and other sectors of the $400 billion industry.
Home, Improvement, Merchants, Retail, Gloom
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2017-37-13
Saturday, 13 May 2017 10:37 AM
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