Unpeeling the 'Trade-Down' Trade
Is the trade-down trade over? Are people stepping up to brand-name products? Boy, what a tough call that is. But when I analyze the guidance for Perrigo (PRGO) and Dollar Tree (DLTR), two of my favorite companies and classic trade-down plays, I have to admit that I'm fretting a bit.
The crosscurrents here are mighty. We know high-end stores are doing well and so-called midrange plays like Macy's (M) are incredibly strong. But we also know that Wal-Mart's (WMT) not strong and is doing shockingly poorly, so poorly that you have to ask yourself if people simply feel better about shopping at more expensive places. Then again, the hottest area of all is the TJX (TJX) / Ross Stores (ROST) bargain-hunting segment, and I have to wonder whether they aren't hurting Wal-Mart as they gain tremendous scale....215 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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