Retail stocks were under serious pressure Tuesday morning after Macy’s Inc (NYSE:M) issued a profit margin warning. This continued the bad news for the brick-and-mortar space as Amazon.com, Inc. (NASDAQ:AMZN) increasingly captures consumer spending wallet share.
Furthermore, all of this comes amid an overall stalling of retail sales economy-wide as post-election ebullience and a strong job market hasn’t translated into higher sales and an acceleration in wage inflation.
The SPDR S&P Retail (ETF) (NYSEARCA:XRT) is declining to critical two-month support near $40, threatening a breakdown to levels not seen since early last year.
Here are three retail stocks to avoid amid the carnage: