The retail stock rally looks crazy overdone.
Looters ransacking retail stores such as Target, Macy’s and Nordstrom (as seen below in one of many Twitter posts) amidst the George Floyd protests is far from retail’s biggest problem at the moment. No, that’s actually one of many major red flags. Take the large sums of money it will take to repair the destroyed stores (and the time needed to repair consumer confidence around the stores) and combine it with minimal business happening inside the stores anyway due to the aftershock of COVID-19, and you have a retail space in for brutal second and third quarters.
“The whole thing going on in America right now, we have moved from lockdowns to looting. What is going on in retail, it’s extremely difficult out there,” said former long-time Chairman and CEO of the American Apparel & Footwear Association Rick Helfenbein on Yahoo Finance’s The