The holiday shopping spree is here, and all giant retailers have already put plans in place to address the expected increase in traffic, gearing up for the Christmas festivities. Starbucks Corporation (NASDAQ:SBUX), Costco Wholesale Corporation (NASDAQ:COST) and Restoration Hardware Holdings Inc. (NYSE:RH) remain CNBC’s Jim Cramer top picks in the retail space heading into the New Year.
Starbucks Corporation (NASDAQ:SBUX) according to Cramer has redesigned and positioned its stores not just for offering desirable products but with the intention of taking customers shopping experience ti another new level.
CEO, Howard Schultz, has already reiterated that Starbucks Corporation (NASDAQ:SBUX) is looking forward to offering a fully immersive multi-sensory theatrical shopping experience that will be second to none in the retail space. Restoration Hardware is also looking to attract more customers with Broadway shows.
“These campaigns announced by Restoration Hardware Holdings Inc. (NYSE:RH); they show you that the theatrical nature of the business is what drives customers unlike Starbucks this stock is well of its highs. But if you are willing to take a multiyear perspective in retail perhaps you buy a ticket to RH show right here in the low $80’s,” said Mr. Cramer.
Costco Wholesale Corporation (NASDAQ:COST) is already enjoying an impressive run in the retail space having reported a 9% same-store sales growth at a time when many people were expecting a 4% gain. With the holiday shopping spree coming fast, Cramer remains confident that Costco Wholesale Corporation (NASDAQ:COST) is on track to break its sales estimates heading into the New Year.
Home Depot Inc. (NYSE:HD) has also enjoyed an impressive rally in the recent weeks with Wall Street remaining upbeat of the stock at the back of the ongoing strengthening of home repair/remodeling market. Cramer remains skeptical about Amazon heading into the New Year as the company has been an underperformer for the better part of the year. Amazon’s stock is 5% down on a year to date.
“You can’t get entertainment from Amazon.com, Inc. (NASDAQ:AMZN) you get from these stores which is why they are stocks or the holiday gifts that keep on giving at this time of the year,“ said Mr. Cramer.
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