Why Big Box Retail Stocks Fell Today
Shares of big box chains, including Bed Bath & Beyond (NASDAQ: BBBY), Macy's (NYSE: M), and Best Buy (NYSE: BBY), finished lower as worries about a global coronavirus outbreak mounted on news of its expansion in multiple countries over the weekend.
Retailers are sensitive to the macroeconomic climate to begin with, and all three of these companies face challenges with the rise of e-commerce and a shift in consumer shopping habits. The coronavirus also threatens the industry specifically as nearly all retailers are dependent on China for their supply chain. The factory shutdowns and delays that have resulted from the coronavirus are likely to have an effect on inventories at U.S. retailers over the coming months.
Today, Bed Bath & Beyond shares fell 6.7%, Macy's was down 4.8%, and Best Buy closed the day off 5.3%. By comparison, the SPDR S&P Retail ETF (NYSEMKT: XRT), which tracks the industry, lost 3.6%, while the S&P 500 finished down 3.4%.
Source Fool.com
