An improving economy bodes well for 2015’s back-to-school and holiday-shopping seasons. However, consumers remain value-conscious, so off-price fashion retailers should see a boost, says Marie Driscoll, who is the CEO of Driscoll Advisors.
Driscoll particularly likes Macy’s (NYSE: M; Price: $68.88) and Nordstrom (NYSE: JWN; Price: $76.29), which are moving into or expanding their discount chains.
Macy’s announced that it would open six off-price outlets in New York in fall 2015 that will be called Macy’s Backstage.
Meanwhile, Nordstrom says it plans to add 27 stores to the existing 167 stores in its off-price Nordstrom Rack chain during its 2015 fiscal year, and the company has plans for 300 by 2020.
Macy’s and Nordstrom have a mean analyst rating of “Buy,” according to Zacks Investment Research.