The retail industry has bounced back, with sales picking up since the second quarter. And with the Biden administration and CDC working closely to reopen schools full-time this fall, popular retail stocks Target Corporation (NYSE:TGT), TJX Companies (NYSE:TJX), Ross Stores (NASDAQ:ROST), and Gap, Inc. (GPS) are expected to gain significantly in the coming months. So read on for more insight into these names’ prospects.Many retailers are gearing up for the new school year by offering diversified products and expanding their inventories. Following the CDC’s guidance for reopening U.S. schools this fall, retail stores are expected to see higher demand for back-to-school products. While the rapidly spreading COVID-19 Delta variant is hindering the recovery of in-store sales, retail companies with strong digital channels should be able to maintain or increase their sales in the coming months.
The strong vaccination drive and consumer spending helped unit sales volume for apparel stores and brands in the United States rise 21% in the second quarter of 2021. In addition, as President Biden emphasizes reopening schools full-time this fall and takes policy steps he deems necessary regarding this, back-to-school spending is expected to exceed $100 billion this year.
Given this backdrop, we think established retail stocks Target Corporation (TGT), The TJX Companies, Inc. (TJX), Ross Stores, Inc. (ROST), and The Gap, Inc. (GPS) could be solid additions to one's portfolio.