Despite surging prices and worsening supply chain due to the Russian invasion of Ukraine, U.S. consumer spending maintained positive momentum in February, as overall retail sales, excluding auto, increased 8.7% year-over-year, according to a Mastercard Inc (MA) report. Moreover, the increasing physical store sales and continued online buying trends with the reopening of the economy should help retailers benefit by passing on the rising costs to consumers. According to a Research and Markets report, the global retail market is expected to grow at a CAGR of 7.7% by 2025. Therefore, both Target Corporation (TGT) and Bed Bath & Beyond Inc. (BBBY) should benefit.
General merchandise retailer TGT has roughly 1,909 stores across the United States and operates 44 distribution centers. It sells its products through its stores and digital channels. BBBY operates a chain of retail stores that operates through two segments: North American Retail and Institutional Sales. The company sells a range of domestic merchandise and home furnishings.
