Amid tax rebates and increased credit card debt, it has been difficult to figure out if consumer spending is showing any real signs of recovery. Deutsche Bank has made up its mind, however: it isn’t. DB on Hardline Retailers:
Most [company] reports will be characterised by weak end‐demand and we do not expect to see much in the way of signs of consumer recovery, particularly with rebate checks appearing to not drive much incremental demand yet. Within this difficult environment, we are focusing on individual names with company‐specific drivers.
In the hardline retailing sector, Deutsche is currently bullish on Pier 1 Imports (PIR), Family Dollar Stores (FDO), and 99 Cents Only Stores (NDN).