2 fast-growing retail shares to add to your shopping basket

The Greencross Limited (ASX:GXL) share price is one of two retail shares which I think are in the buy zone right now. Here's why…

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The retail industry certainly is a difficult one to operate in. The rise of online shopping and the emergence of low-cost retailers has meant some retailers such as Myer Holdings Ltd (ASX: MYR) and Woolworths Limited (ASX: WOW) have struggled for growth in the last few years.

But not all retailers are struggling. Two retailers at the top of their games right now are listed below. Here's why I think they could be the best investment options in the retail industry:

I think the Greencross Limited (ASX: GXL) share price is in the buy zone right now. With its shares trading at 18x trailing earnings and management forecasting double-digit earnings growth this year, the integrated pet care company strikes me as great value.

As well as its 164 veterinary practices throughout Australia, the company has a strong retail presence through its Pet Barn brand. At present the company has a total of 237 retail stores, which delivered like-for-like sales growth of 4% during the first-half. Pet ownership in Australia is on the rise and I expect the company to profit greatly from the tailwinds it provides.

With the Premier Investments Limited (ASX: PMV) share price down around 15% in the last six months, I think that now is an opportune time to make a buy and hold investment. Although the company has a number of retail brands, the two standouts in my opinion are Smiggle and Peter Alexander.

The Smiggle brand in particular was a key highlight in FY 2016, growing sales by 41.8% to $188 million. The brand now accounts for approximately 18% of total company sales. Thanks to its international expansion plans I expect in time the brand will contribute an even larger proportion of company sales. As it has some of the highest margins in its portfolio of brands, this can only be good news for the company.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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