“50% off was not drawing people into stores,” explains Jon Najarian on CNBC’s Closing Bell. It was more like 70%.
“It's still very clear from the results the most important thing is price," Richard Jaffe, retail analyst at Stifel Nicolaus, adds. The new fashion is frugal. The new black is 60 percent off."
That comes as no surprise. But what you might find surprising is that the weakness has prompted some investors to pour into the retail sector on hopes the dismal results signal a bottom for share values.
Got 99 Cents?
Although investors gobbled up shares Macy’s and Nordstrom on Thursday, they might have gone to the wrong stores.
If you're looking to maximize your investment buck Jon Najarian recommends focussing on stores that shoppers will find appealing in a weak economy.
“The play I really like is 99 Cent Stores ,”counsels Najarian. It’s almost unchanged on the year, he says, and frugal shopping will be a focus for almost everyone.
“Also check out Autozone . In this economy people will be staying in their cars longer," he adds.
“And if you want to take a long shot on a fallen angel," look at Footlocker for it’s balance sheet.
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CNBC.com with wires