With consumer sentiment continuing to drift lower, the retail industry is certainly a difficult place to operate right now.
Unsurprisingly this has led many investors to sell their retail shares, driving share prices in the sector to low levels.
Three shares which look cheap to me at the moment are listed below. But should you snap them up?
The Collins Foods Ltd (ASX: CKF) share price is down around 13% in the last three months. This means the KFC operator's shares are changing hands at just under 14x trailing earnings and provide a trailing fully franked 3.1% dividend. I think this is great value, especially considering the potential boost its earnings are likely to receive from its expansion into Europe.
The Myer Holdings Ltd (ASX: MYR) share price has fallen 37% year-to-date. Whilst this means its shares are trading at just over 9x trailing earnings, I wouldn't necessarily rush into an investment just yet. Amazon has had a hugely negative impact on department stores across the world. If the retail behemoth does launch here later this year, I am concerned that Myer's business could come under significant pressure.
The Premier Investments Limited (ASX: PMV) share price is down 12% since the turn of the year. With its shares now trading at 19x trailing earnings, I think the retailer could be a good option for investors. Whilst not all of its brands are winners in my opinion, I believe the growth potential of its high margin Smiggle and Peter Alexander brands should more than offset any weakness in the rest of the business.
