TARGET CEO: This may be strongest consumer environment I’ve ever seen

Monica Schipper /
Stringer

•  Retailers are reporting the strongest
  sales in over a decade, beating earnings and lifting
  full-year guidance. 
• “We’re currently benefiting from a very strong
  consumer environment, perhaps the strongest I’ve seen in my
  career,” Target CEO Brian Cornell said.
• Jefferies analysts say there’s no need to worry
  about the “rise of Amazon” as the e-commerce giant “isn’t
  good at selling things non-commoditized fashion
  goods.”

American retailers experiencing the best consumer environment
in over a decade.

He added: “Total sales were up 7% from a year
ago reflecting 0.5 point of growth from our new and
non-mature stores. Store comparable sales increased nearly
5%. And digital sales grew more than 40% in the second
quarter, as guests continued to respond to a growing menu of
convenience of women options, newness throughout our
merchandising categories, freshly remodeled stores and a
higher level of service across the chain.”

The strong results led a team of Jefferies analysts,
led by Randal Konik, to declare, “BUY RETAIL!” on eight
separate occassions in Wednesday’s note to
clients. 

Retailers have refocused capital investments away from
brick & mortar building and moved head long into digital
investments in areas of fulfillment, supply chain, delivery,
and mobile commerce among other area.

Jefferies’ top picks in the space includes Gap, Michael
Kors, Kohl’s, and Under Amour.