For many retailers, this winter could get really ugly.
Economists are expecting U.S. Gross Domestic Product to grow at 2 percent in the fourth quarter, which is basically flat. With unemployment remaining above 7% and consumer confidence shaky, the last thing that many people feel like doing this holiday season is shopping. Not surprisingly, many retail stocks have been hammered lately and many economists remain downbeat.
“I don’t get a good feeling about the holiday season,” says Mike Meyer, a market strategist with EverBank in an interview. “Shoppers these days get motivated by once-in-a-lifetime sales. … Going forward, it’s going to be interesting see if consumers get addicted to these low prices much like financial markets have become addicted to these extraordinary stimulus measures.”
Here’s a look at five retail stocks in for a cold winter: