As the economy continues to approve, many retail stores are following suit. Even with COVID cases rising again, people are out shopping for the latest clothing trends. That's why investors should consider apparel companies like Ross Stores (NASDAQ:ROST), TJX Cos. (NYSE:TJX), and Burlington Stores, Inc. (NYSE:BURL).Nationwide retail sales declined nearly 2% in May. However, U.S. retail sales increased more than half a percentage point this past month. This is a positive sign considering some top economists predicted a 0.4% decline.
It is clear the demand for goods is strong, although consumer spending has shifted toward services as opposed to products. Consumer spending is an important gauge of economic health as it accounts for nearly three-quarters of all activity throughout the country. An increase in consumer spending is a sign the economy is transitioning to a higher gear.
The jump in retail sales is significant for apparel companies as heightened retail activity bodes well for clothing sales. Add in the fact that society is reopening, meaning people will spend more time socializing with others while rocking stylish threads, and there is even more reason to invest in apparel stocks. Three such stocks are Ross Stores (ROST), TJX Cos. (TJX), and Burlington Stores, Inc. (BURL).