Over the past few months, it was observed that American consumers were not spending as much as expected. However, it looks like they are starting to shop again, though they are being more selective about their purchases.
The retail world has always been highly competitive, similar to the ‘survival of the fittest’ concept in nature. Recently, this competition has become even more noticeable, clearly separating the winners from the losers in the market.
To understand this better, let’s look at the stock market. Some major companies have seen significant growth this year. For example, Amazon’s stock has surged by an impressive 83%, Under Armour has gone up by 47%, and toy maker Hasbro has seen a 41% increase.
On the flip side, some retail stocks have not performed well. Michael Kors’ stock has plummeted by 46%, Gap’s stock has fallen by 37%, and Ralph Lauren’s stock has also dropped by 37%. Ralph Lauren’s performance has been so poor that it prompted the company to replace its founder with a new CEO in hopes of improving its fortunes.