In the post COVID-19 world where new consumer shopping habits such as curbside pickup for daily needs will be ingrained and people only want to make one trip to a store to reduce the potential of getting sick, those non-essential retailers with the best-positioned stores will be the winners.
That is if they are nearby jam-packed grocery stores like Kroger (KR) or Target (TGT).
“Given the continued strength we see in essential retailers like grocery stores and broadline retailers, we think those retailers with real estate that is most closely located near them will likely benefit from a faster recovery of sales at their store locations,” said Goldman Sachs retail analyst Kate McShane in a new note to clients.
The investment thesis here is straightforward. A consumer visits a grocery store for milk, eggs, toilet paper and hand sanitizer, they get the stuff put into the car, and then they