With Amazon expected to launch in Australia in the not so distant future, I can fully understand why some investors are cautious about buying retail shares.
Whilst I believe investors are right to be concerned about how a retailer like JB Hi-Fi Limited (ASX: JBH) might be negatively impacted, I believe there are a number of retail shares which will fare better than others.
Three retail shares that I'm bullish on are listed below:
Although the Bapcor Ltd (ASX: BAP) share price has rallied strongly in the last couple of weeks, it is still down by around 5% year-to-date. I believe this could make it an opportune time to invest in the auto parts wholesaler and distributor. Especially as I feel its business is far less likely to be disrupted by Amazon than many other retailers.
Despite the retail sell-off, the Noni B Limited (ASX: NBL) share price is up a staggering 41% so far in 2017. I can't say I'm surprised either. Through W Lane, Table 8, BeMe, and its eponymous Noni B brand, the company operates in the middle-aged women's fashion clothing market. Not only is its target demographic less likely to shop online compared to younger demographics, but is a fast-growing demographic thanks to Australia's ageing population.
The Premier Investments Limited (ASX: PMV) share price has fallen almost 16% since this time last year. While I do have concerns over the impact Amazon will have on some of its brands, I feel confident its two most important brands will continue their impressive growth unabated. Those brands are of course Peter Alexander and Smiggle, two niche brands which combined account for about 40% of its total sales. I expect this percentage to grow significantly in the future as the Smiggle brand's global expansion accelerates.
