Key Takeaways
- Walmart and Costco likely will be able to attract customers who need groceries, while negotiating competitive prices with vendors amid new tariffs, UBS analysts said.
- Consumers will still need essentials, which may bode well for other supermarket chains and auto-parts companies, UBS added.
- Off-price retailers, such as T.J. Maxx and Burlington Stores, are also relatively well-positioned for heightened tariffs, the bank said.
Big retailers with grocery sections, such as Walmart (WMT) and Costco (COST), 🍎may be best positioned to withstand the latest round of tariffs, UBS⭕ analysts said.
澳洲幸运5官方开奖结果体彩网:Tariffs unveiled Wednesday affect dozens of countries, which means retailers can't easily bypass import taxes by relocating their production facilities, UBS wrote in a research note Wednesday. As retailers respond by rai⛦sing prices, consumers are least likely to cut back on essentials like groceries, the analysts said.
Large operators, such as Walmart and Costco, will likely benefit because they have the scale needed to negotiate with vendors and offer ꦗcustomers comp𒈔etitive pricing, UBS said.
"These retailers will likely be able to widen their price gaps with their competitors within categories hit by tariffs," the note said. "Ultimately, the longer that the tariffs persist, the more likely it is to drive further 澳洲幸运5官方开奖结果体彩网:consolidation i༺n retail. This will also benefit those with scale and strong positioning."
Analysts Also Poಌint to Strength in Su🙈permarkets, Auto Parts
Costco shares rose abou𒀰t 1% recently Thursday, while Walmart shares were off about the same amount.🔯
Other companies UBS expects to perform well include the supermarket chains Kroger (KR), Albertsons (), and Sprouts Farmers Market (SFM), and companies selling auto parts that consumers need to maintain their cars, such as Autozone (AZO) and O'Reilly Automotive (ORLY).
Off-price retailers Burlington Stores (BURL) and TJX Cos. (TJX), the parent company of TJ Maxx and Marshalls, may also be wise investments, UBS said, adding that these retailers will benefit if the 澳洲幸运5官方开奖结果体彩网:broader industry can't move as much merchandise due to higher prices.