AutoZone and Three Other Retailers to Buy for the Election

Text size

AutoZone is on Wells Fargo analyst Zachary Fadem’s list of best ideas..

Justin Sullivan/Getty Images

With the presidential election just over three weeks away,

Wells Fargo

took a look at what the results could mean for the retail sector. The bank found that the best bets are in home improvement and auto parts.

Analyst Zachary Fadem noted that Democratic nominee Joe Biden, now leading in the polls, has pledged to return corporate taxes to their level before the 2017 tax cuts, at around 28%. While that might be a concern for investors, he said retailers have advantages that could help offset the pain.

If limits on state and local tax deductions are also removed, he said, many consumers may spend more. Potential new tax credits, such as for child care, could also put more money into the pockets of low- and middle-class consumers, funds they might use for more shopping.

Ultimately, he said risks linked to the election are “relatively low for our coverage,” making it likely that recent trends will continue. He listed


(ticker: AZO),

O’Reilly Automotive


Home Depot

(HD), and


(LOW) as his best ideas, as he has previously.

In the five most recent election years, Fadem said, so-called hardline retailers, selling durable goods, outperformed the broader market in the three-, six-, and 12-month periods post-election.

Tractor Supply

(TSCO), O’Reilly,

Best Buy

(BBY), and


(WSM) were “notable standouts,” he said.

The pattern also held true in the final two months of presidential election years, which could bode well for the group going into the end of 2020.

With current tariffs remaining in place, the 28% tax rate Biden favors would chip away about 9% from the group’s earnings per share, on average, he says. Retailers with exposure to the highest-tax states, such as Restoration Hardware’s parent RH (RH) and Williams-Sonoma, could benefit if the SALT cap is repealed.

“To state the obvious, retailers not currently paying corporate taxes (Carvana (CVNA), Vroom (VRM), Wayfair (W)) face little election impact,” he wrote.

Auto-parts retailers are Fadem’s favorite way to play another round of stimulus. AutoZone and O’Reilly have greater exposure to cost-conscious do-it-yourself consumers, he said.

“Regardless of election outcome, we think tailwinds for home improvement (Home Depot, Lowe’s, Floor & Décor (FND)) likely continue,” he wrote, given that home remodeling is at a record high.

Tariffs imposed by the Trump administration are a “key variable,” the analyst said. Any relief on that front would likely benefit RH, Floor & Décor, At Home (HOME), and Best Buy the most, he said.

Write to Teresa Rivas at [email protected]

Source Article

Read more

Many Retailers, From Belk To Home Depot, Retire The Annual Columbus Day Sale

It seems as though the annual Columbus Day Sales promotion has finally run its course. Retailers have largely abandoned the event. Once a profit generator for department stores and downtown shopping districts, the Columbus Day Sale has become a liability.

The depiction of an explorer who enslaved and brutalized native inhabitants of the West Indies brought Columbus front and center during recent demonstrations. Many no longer celebrate Columbus as a skilled navigator and the discoverer of America.

The controversy behind Columbus Day is nothing new and has been brewing for several decades. But after a year that included calls for social reform, the removal of statues and monuments, and retail sales declines and closures, 2020 became the year to retire the Columbus Day Sale.

Last October, Belk, the Charlotte-based department store company, held its annual Columbus Day Sale but its sale circulars did not feature the promotion’s name in bold print. Belk has abandoned the annual event completely this year. At Belk, it’s now the “Feeling Fall Sale.”

By the late 1970s, the Columbus Day Sale transitioned from a clothing sale to a home improvement promotion. Home Depot, Lowe’s
, Ashley Furniture, and many more home retailers advertised the Columbus Day Sale tradition up through, and including, 2019. But Home Depot and Lowe’s have retired the Columbus Day Sale for 2020.

However, “Rooms To Go” has elected to hold a Columbus Day Sale this year. The retailer operates over 150 furniture stores throughout the southeastern United States, Texas, and Puerto Rico. Janis Altshuler, Senior Vice President at Rooms To Go, says, “Rooms To Go opted to keep Columbus Day as the name for the event because that is the federal name of the holiday and we wanted to avoid confusion. This certainly will be considered in the future and no decision has been made for 2021.”

Altshuler explains why it remains an important sale for furniture retailers. “Traditionally, federal holidays, especially those that turn into 3-day weekends, make for good furniture shopping times for consumers. Since furniture is a considered a large purchase, it is advantageous to have multiple family members be able to shop together and having Monday off extends that opportunity.”

In recent years, department stores, once the cornerstone for the annual event, have steadily abandoned the Columbus Day Sale name. Dillard’s eliminated the annual promotion in 2009. Macy’s did likewise in 2017.

The Columbus Day Sale had little purpose other than to be an October promotion. The year’s sales trends often dictated the nature of the sale. Retailers used it as a clearance event for summer stock when back-to-school figures

Read more

Cleveland Kitchen Brings the Flavor This Fall to 9,000 Retailers Nationwide

CLEVELAND, Sept. 8, 2020  /PRNewswire/ — Untold volumes of flavor are now within reach for families nationwide as Cleveland Kitchen, the culinary brand focused on delicious and healthy fermented foods, is proud to be launching its fresh products into retailers across the country. The creator of the world’s FIRST line of Fermented Dressings and Marinades have made their delicious offerings more accessible than ever with expansion of their direct to consumer selections and new distribution, bringing the total number of stores their fresh fermented products can be purchased at to 9,000 storefronts.

Shoppers may know Cleveland Kitchen by their original name, Cleveland Kraut. The name change came as part of the brand’s goal to create a bigger kitchen for a bigger mission – to provide fermented foods for all. Recently, the company expanded their product lineup to include not only their well-known sauerkrauts, but also mouthwatering fermented dressings and marinades that come in flavors such as Gnarly Miso Jalapeño, Roasted Garlic, Sweet Beet, and Hail Caesar.

“This expanded distribution is an integral part of our brand’s mission to integrate healthy and absolutely delicious fermented foods into the American diet by giving our consumers an easy entry point into fermented that they don’t have to be intimidated by,” said Co-Founder and CEO of Cleveland Kitchen, Drew Anderson. “Our new retail partners see that there is a need in the refrigerated produce section for innovation and we are so excited to be a driver of growth in the category.”

Look out for Cleveland Kitchen products in the produce aisle of your favorite Target, Wegman’s, Whole Foods, Sprouts Kroger, Giant Eagle, Meijer, Albertsons, Publix, or Heinen’s this fall for all your salad, bowl, wrap and even charcuterie board needs. Grab the new dressings and marinades or mouthwatering sauerkrauts for $5.99, both prices dependent on the retailer. For families who prefer to have their fermented favorites come to them, check out their e-commerce selection at or take a look at Cleveland Kitchen’s Instagram, @clevelandkitchen, to learn more.

About Cleveland Kitchen
Cleveland Kitchen was started with three brothers, cabbage and a traditional family recipe. The brothers began their fermenting journey in college as a way to stay in touch with their Cleveland roots and began to create fresh, crunchy, probiotic krauts that used simple ingredients like vegetables, garlic and salt. After serving up their mouthwatering take on sauerkraut at local farmers markets, the founders expanded their availability and now, provide their world-class products across the country. Today, Cleveland Kitchen is an innovative culinary brand focused on fermented and cured products that taste amazing and are healthy for all. For more information, please visit and follow their Instagram page.

Kim Le | Sonja Melin
[email protected] 

SOURCE Cleveland Kitchen

Related Links

Source Article

Read more