Let it show, let it show, or at least let it stay cold.
The key to this next leg of an economy that is 70% consumer spending is that there has to be another inventory turn, right now on this cold weather, so another set of goods can be brought in to sell again for the holidays.
Yep, it is not enough that jobs are more plentiful or that gasoline prices are down. The retailers need you to get in there with a winter mindset. They are stocked to the gills, with the stuff having had to cut prices in early November, to get rid of the early fall inventory. We know from outfits like J. C. Penney (JCP) and Macy's (M) that the end of October was too promotional for their tastes, hence the downbeat guidance.
But warm coats, gloves, and scarves are all sitting there for the taking. Not, though, if it is too warm. This is crunch time for all the big retailers, and as I look at the map of the storm in this country, it makes me want to buy some shares of TJX (TJX), Ross Stores (ROST), Macy's and even J. C. Penney, which has taken itself down enough that good things can happen. Don't forget Nordstrom (JWN). This weather is a godsend, as it is for Deckers Outdoor (DECK) with its UGG brand.
What about Target (TGT) and Walmart (WMT)? Would anyone mind if they come down ever so slightly? I would, but they will work, too.