The strong demand in the retail food industry is being fueled by a supercharged economy, a solid vaccination drive, and a rebound in discretionary spending. Also, since the shift to convenient and safe purchasing of essential food items is likely to persist, food retailers are expected to benefit. However, since the market is volatile currently, we think it would be wise to bet on food store retail stocks that pay dividends. So, high-dividend-yielding stocks Albertsons (ACI) and Weis Markets (WMK) could be solid bets now. Let’s discuss.Food and grocery retail businesses have witnessed unprecedented changes over the past year, with a shift in consumer habits and lifestyle changes. While the economy's reopening this year is driving a revival in foot traffic in physical stores, the convenience of buying essential food items online and having them delivered at home continues to foster a dependence by consumers on digital stores.
As food retailers leverage both online and physical stores to drive sales, they are well-positioned to keep growing. Rising disposable income and affordability and increasing urbanization worldwide should contribute to the industry’s continued growth. Indeed, the global food and grocery retail market is expected to hit $17.3 trillion by 2027, growing at a 5% CAGR.
So, amid the current market volatility, we believe retail food store stocks Albertsons Company Inc. (ACI) and Weis Markets Inc. (WMK), which pay dividends, are attractive buys.