Even though the resurgence of COVID-19 cases may dampen department stores’ growth in the near term, relatively inelastic demand for consumer goods and their strong online presence are expected to help quality department store stocks Kohl’s (KSS), Macy’s (M), and Dillard’s (DDS) advance. In contrast, we think it could be wise to avoid Nordstrom (NYSE:JWN) because of its relatively weak fundamentals. Let’s discuss.The resurgence of COVID-19 cases due to the rapid spread of the highly contagious Delta variant continues to worry investors. In addition, according to Trading Economics data, U.S. retail sales in July declined 1.1% from the prior month.
