MENU

5 retail shares for growth investors’ shopping lists

Despite the challenges of the ever-evolving retail business, these five companies have continued to adopt and are thus leading players in their industries. They have built long-term sustainable competitive advantages that will most likely see them operating successfully in the future.

Here are five retail shares, which I believe have good future prospects.

Company Retail Sector P/E       ROE Stock Price Appreciation Since December 30, 2011.
JB Hi-Fi Limited (ASX: JBH) Electronics 13.71 27.35% 61.77%
Premier Investments Limited (ASX: PMV) Clothing 25.06 6.68% 185.92%
RCG Corporation Limited (ASX: RCG) Footwear 41.24 6.99% 345.59%
ARB Corporation Limited (ASX: ARB) Automotive 26.71 20.79% 95.44%
Burson Group Ltd (ASX: BAP) Automotive 33.19 10.72% 91.71%

Source: Google Finance

JB Hi-Fi Limited (ASX: JBH) – JB Hi-Fi continues to solidify its position as the leading electronics retailer in Australia by adding new product lines and store formats. It plans to increase the number of stores from the current 187 to 214.

Premier Investments Limited (ASX: PMV) – Premier Investments is the owner of famous brand names like Just Jeans, Jay Jays, Smiggle and Peter Alexander. Positive sales growth was recorded across all brands during the last financial year and more new stores are being added to the network during the current financial year.

RCG Corporation Limited (ASX: RCG) – RCG is the owner of The Athlete’s Foot and retailer of internationally famous footwear brands. The recent acquisition of another footwear distributor and retailer, Accent Group, will likely enhance growth.

ARB Corporation Limited (ASX: ARB) – ARB Corporation manufactures and retails four wheel drive parts. ARB has seen tremendous growth over the last 10 years, however it seems that growth is slowing down. The business still remains a high-quality business and is likely to continue growing in the future.  

Burson Group Ltd (ASX: BAP) – Burson is Australia’s leading automotive aftermarket parts business with a 100-plus stores in the network. Burson recently acquired the automotive division of Metcash Limited (ASX: MTS), adding brands like Autobarn and Midas to the network.

Foolish takeaway

All of the companies mentioned above have been highly successful in their area of business. The future prospects for them also look appealing as they are run by passionate management. So a Foolish investor seeking exposure to quality businesses in the retail sector should consider adding them to the watch list.

Here Are 2 Top ASX Shares Warren Buffett Would Love...

Hot off the presses! The Motley Fool has just published a brand-new investment report and your copy is FREE. Click here to discover Warren Buffett's investing secrets and two top ASX shares Buffett could love! Your copy is free when you click here.

Motley Fool contributor Qaiser Malik has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia owns shares of Burson. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.