- We believe stand-alone stores that carry pharmacies or groceries will end up with the lions’ share of specialty products through licensing agreements.
- For example: Target (TGT), Walmart (WMT), TJ Companies (TJX), Home Depot (HD), Costco (COST), Walgreens (WBA), Starbucks (SBUX), Rite Aid (RAD), Lowes (LOW).
- We believe traditional brick and mortar retail names that you find in malls will disappear/reappear in a “stand-alone” store. The latest casualty is Ann Taylor (Ticker: ASNA) (Chart #1).
- ~11% of U.S. retail sales were done online in 2016. 2016 online sales grew 15.6% over 2015 according to the US Department of Commerce.
- Wholesale auto prices declined 1.5% in April according to the Used Vehicle Price Index by J.D. Power Valuation Services.
- Used vehicle price index by J.D. Power Valuation Services, falls for 10th straight month as off-lease volumes flooding market.
- We see pricing headwinds likely through 2018 as volume of off-lease vehicles will be steady through 2019.
- Used car prices expected to decline in the 6% range in 2017 (Chart #2).
- Brazil scandal news sends ripple through Brazilian financial markets. Bovespa (Brazillian/Sao Paolo stock market) falls. Currency (Brazilian Real) tumbles.
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