Large retailers and e-commerce companies were the big winners of the pandemic as people were forced to stay at home. As the economy continues to improve and more retailers open their doors, more niche based retailers should see their sales increase. That's why investors should consider small cap retailers such as Zumiez (NASDAQ:ZUMZ), Buckle (NYSE:BKE), and Abercrombie & Fitch (ANF).Retail stocks have been a mixed bag through the pandemic. While some big-box retailers have fared quite well due to consumer hoarding and ever-increasing prices, others have faltered. Retailers' success during these trying times is largely dependent on whether they sell necessities and if they have successfully pivoted toward digital ordering and delivery/pick-up as opposed to traditional in-store shopping.
The retail segment as a whole has the potential to pop as more people are vaccinated, and consumerism picks right back up where it left off before the start of the pandemic. Investors looking to diversify their portfolio with new stocks should consider adding a couple of small-cap retail stocks.
The following three small-cap retail stocks have the potential to move higher in the second quarter of 2021 and beyond: Zumiez (ZUMZ), Buckle (BKE), and Abercrombie & Fitch (ANF).