2025 may be a transformative year for the retail industry. Following a period of growing consumer confidence and increased discretionary spending amid lower inflation post-COVID, retailers have an opportunity to build loyalty among existing customers and expand their bases at the same time. However, there are potential obstacles as well—the retail space is becoming increasingly crowded, supply chain issues may become untenable depending upon geopolitical developments, and many companies are scrambling to determine how best to incorporate AI into everything from product development to marketing.
One key to success in the new year is maintaining momentum beyond the holiday rush—always a busy time for retail stores—into a period in which spending often trends downward. Investors keen to buy shares of retailers poised to outlast the end-of-year spending boom might look to Wall Street analyst commentary. Build-A-Bear Workshop Inc. (NYSE: BBW) and Haverty Furniture Companies Inc. (NYSE: HVT) are two retailers that stand out among analysts. A third company, Natural Grocers by Vitamin Cottage Inc. (NYSE: NGVC), is also worth noting for its stock price momentum toward the end of the year.
