With 2014 approaching its end, it's time to explore retail's outlook for 2015.
Gerald Storch, former chief executive of Toys R Us, said in an interview Monday with CNBC's "Fast Money: Halftime Report" that the sector will be dominated by three categories. The CEO of Storch Advisors said his top three retail themes to look out for are high-end consumer goods, value and the Internet.
"The high-end consumer has a lot of money," Storch said. "The stock market is up and there's a strong correlation between stock market performance and consumption of luxury goods."
Storch said his second retail theme of 2015 would be value retailers such as T.J. Maxx, Costco, Ross and Dollar General because consumers are constantly looking for deals. "Ever since the Great Recession, the consumer is heavily focused on value," he said. "You have to really be delivering something at a price."
Finally, Storch said the Internet is the most important theme for retail in 2015, not only because of the price transparency it provides, but because of how it has helped omnichannel retail.
"Omnichannel retail has grown dramatically, and that's where customers shop online and pick up at the store," he said.
Companies like Macy's, Nordstrom, Best Buy and Target have adapted best to the changes the Internet has brought along, Storch said. "These companies have done a fantastic job of catching up with the Internet, so it's not just a game for the online-only retailers," he said. "There are others that haven't done so well, and they have to catch up fast."
Storch added that oil's current price drop is beneficial for the retail industry. "Every single product that is sold has a transportation component, so that'll lead to lower transportation costs," he said. "It's a huge driver for the economy if it stays this low."
Storch will take over as CEO of Hudson's Bay on Jan. 6, succeeding Richard Baker. Hudson's Bay reported its Saks store on Manhattan's Fifth Avenue was valued at $3.7 billion, an $800 million value increase since the company bought the department store chain.