As the post-COVID era ramps up, double-vaccinated Australians are getting out and about to spend the money they saved during lockdown.
The most obvious beneficiaries of this are retailers.
But societal trends don't automatically bring in revenue and profit — a business needs to know what it's doing to take advantage.
So here are 3 retailer ASX shares that analysts at Wilson Asset Management recently nominated as buys:
Australians are hitting the pavements, so what will they need?
Wilson senior investment analyst Shaun Weick likes the look of Accent Group Ltd (ASX: AX1), which owns recognisable shoe retail brands like Hype DC, The Athlete's Foot and Skechers.
"We think demand is going to bounce back really strongly," he told a WAM YouTube video.
"If you have a look at the projections… you've got 10% to 15% growth per annum in the footprint."
The group also has more nascent, emerging brands — such as Stylerunner — that could drive expansion.
"We also think acquisition of Glue provides a lot of potential upside through a turnaround."
The market has agreed with Weick, with Accent shares pushing up about 27% over the past 2 months.
Billionaire businessman Bretty Blundy is now a shareholder, according to Weick. Blundy has experience in the youth fashion area, having overseen the listing of Universal Store Holdings Ltd (ASX: UNI) last year.
Time to buy some chic ASX shares
Women's fashion merchant City Chic Collective Ltd (ASX: CCX) is another buy for Weick.
"This business has transformed itself into a global plus-size retailer," he said.
"If you have a look at what's happening in the US at the moment, the volumes across the websites are significantly accelerating. And we think that's a strong lead indicator."
City Chic shares have surged by more than 60% for the year so far.
A week ago, they shot up more than 5% within a day after the company gave a positive update.
"The company [has] done a great job in terms of expanding their marketplace strategy recently, rolling out on the likes of Target Corporation (NYSE: TGT), Amazon.com Inc (NASDAQ: AMZN) and Wallmart Inc (NYSE: WMT)," said Weick.
"We think that aspect of the business is underappreciated."
The traffic is already bad in Sydney
For something different to shoes and clothing, analyst Anna Milne picked petrol retailer Ampol Ltd (ASX: ALD) as a "good buy" right now.
"We think as NSW and Victoria reopen, there's going to be an increase in retail fuel volumes and jet fuel volumes as we get on planes more."
Milne's team also likes the outlook of Ampol's takeover of Z Energy Ltd (ASX: ZEL).
"Great New Zealand company. It is strategically sound and is mostly debt-funded — so very accretive on earnings and free cash flow basis."
Ampol shares have spiked up about 17% over the past couple of months.
