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Depends which one. Some of the retailers will come out stronger.
Lee ? Wrangler
Ton of innovation happening in retail, especially with the launch of subscription and online only retailers. RealReal, Allbirds, LVMH, Stitch Fix are all trying attempting to innovate. I’m really curious to see if subscription retail takes off.
My theory is that the whole athleisure trend will get some tailwinds, especially if work from home expands a lot. Could consider who's going to come out ahead. Cookware, grocery, maybe those home cooking box things...
I also feel like DIY and smart home etc. will do well.
Board games and the like too maybe?
Mentor
How material do we expect these trends to be in the long-term? Do we think WFH is the new normal?
Cookware may get a one-time bounce, but it's not like I replace my pans that often. While I love the idea of the home-cooking boxes, my understanding is that there is no profit margin in that business. I expect people to have less disposable income, so luxury products like this might take a hit.
If we think schools will stay closed and WFH will persist for another year, I'd be interested in opportunities in Telco, home entertainment, etc. But if we're looking at this kind of horizon, is going to be pretty bumpy.
Retail overall isn’t disappearing, just shifting. I’d ask two basic questions:
1) How well are they positioned to at least weather, better benefit from the current situation and however long it may last.
2) How are they positioned long term in an industry that is going digital (like all) but also heavily ripe for consolidation in many markets (US grocery market for example)