I believe the 31% drop in the Reject Shop Ltd (ASX: TRS) share price this morning was yet another reminder of how tough it can be to operate in the retail industry.
With low-cost operators and online behemoths aiming to steal market share from Australian retailers, I feel investors are low on options when it comes to picking retail shares.
But that doesn't mean there aren't any quality investments to be made in the space. Here are three retail shares which I think are great investment ideas today:
Although the Bapcor Ltd (ASX: BAP) share price is up over 21% since this time last year, I don't believe it is too late to snap up shares in the auto parts wholesaler and distributor. Due to the strong performance of its Burson Auto Parts, Autobarn, and Midas brands, Bapcor recently posted a 44% increase in pro-forma half-year net profit after tax. I expect more of the same in the second-half thanks to sustained organic growth and the acquisition of the Hellaby Automotive business.
The Noni B Limited (ASX: NBL) share price has certainly gone gangbusters in the last 12 months, rising a staggering 57%. This growing retailer specialises in fashion for the middle-aged woman through the Noni B brand and the recently acquired Rockmans, W Lane, Table 8, and BeMe brands. Thanks partly to these new acquisitions, the company recently posted a 132% jump in half-year revenue to $143 million. As I feel these brands are less likely to be disrupted by online retailers, I believe the company is in a strong position to deliver solid bottom line growth over the next few years.
The Webjet Limited (ASX: WEB) share price has been one of the best performers on the entire market in the last 12 months with a whopping 90% gain. Despite this incredible rally I still believe there is plenty left in the tank for investors willing to make a buy and hold investment in the online travel agent. Earlier this year the company delivered half-year net profit after tax growth of 86.9%. The catalyst for this was continued strong organic bookings and market share growth from all of its businesses. I expect more of the same in the second-half.
