Despite the inflationary pressure and uncertain macroeconomic environment, grocery/big box retailers have benefited from the inelastic demand for their products. Although high inflation is a major concern for the retail industry, rising prices usually do not deter consumers from spending on essentials. As a result, grocery/big box retailers benefit by passing on the rising costs to consumers.
U.S. retail sales were flat sequentially in July but increased from a year ago. Grocery stores witnessed a similar trend. Given its defensive nature, the Grocery/Big Box Retailers industry is currently positioned at the top of the industry list in our proprietary rating system.
