The rise of online shopping and the arrival of low-cost retailers like H&M and ALDI in Australia has led retailers such as Myer Holdings Ltd (ASX: MYR) and Woolworths Limited (ASX: WOW) to struggle for growth in recent few years.
Unfortunately for shareholders, as you might expect this has had a negative impact on their respective share prices.
But not all retailers are struggling. Three retailers which have continued to grow unabated are listed below. Here's why I think they could be three of the best options in the retail industry:
The Greencross Limited (ASX: GXL) share price has risen 12% in the last six months thanks largely to a solid half-year result announcement from the integrated pet care company in February. As well as a strong performance from its 164 veterinary practices, the 17% jump in net profit after tax was driven by a 3.8% increase in like-for-like sales growth at its retail stores. Through its retail brands including Petbarn, City Farmers, and Animates, Greencross has a network of 237 stores throughout Australia. With pet ownership in Australia on the rise, I expect the company to profit greatly from the tailwinds it provides.
The Noni B Limited (ASX: NBL) share price has been one of the best performers in the retail industry this year with a 13% gain. This brings its 12-month return to an impressive 39%. Despite the strong gain I don't believe it is too late to grab a slice of the fashion retailer. Through its brands Noni B and the recently-acquired Pretty Girl, the company has become a force in the lucrative middle-aged woman market. In its half-year results the company posted a 142% jump in half-year revenue to $143 million. Pleasingly underlying pre-tax profit rose even quicker at 149% to $10.1 million.
The Premier Investments Limited (ASX: PMV) share price has fallen by 20% in the last 12 months. I believe this drop has left its shares trading at a great price for patient buy and hold investors. In its recent half-year results the company behind brands such as Smiggle, Peter Alexander, and Just Jeans reported a 10.6% increase in earnings before interest and tax to $93 million. The key driver of the strong result was once again the Smiggle stationery brand. Smiggle's global sales increased 26.4% during the period, meaning it now accounts for almost 23% of the company's total sales. And with its global expansion showing no signs of slowing, I believe Premier Investments is in a solid position to continue growing its bottom line at an above-average rate for several years to come.
