Consumer Shares Advance on Hopes for Rebound -- Consumer Roundup
Consumer shares rose on hopes the sector would rebound from a generally weak earnings season.
While Walmart and other discounters, such as TJX Cos., have been able to eke out growth, many are struggling to compete with Amazon.com, according to one money manager. "It's not a cyclical change, it's a secular change and it's not going back," said Thomas Digenan, head of U.S. intrinsic value equities at UBS Asset Managment. "Once I become an Amazon shopper, I don't all of a sudden think 'I'll go look around the store.' It's a trend that's not going to reverse." While Mr. Digenan said retail is "not dead," he predicted that many malls will disappear and others will be forced to reinvent themselves in order to draw business.
Foot Locker shares plunged after the retailer said first-quarter sales rose less than expected.
Campbell Soup struggled to attract shoppers to center aisles of grocery stores, posting a 1% decline in sales year-on-year.
-By Rob Curran, email@example.com