This week Amazon is widely expected to launch in Australia ahead of the busy Christmas trading period.
This will undoubtedly be a big blow to many retailers including Myer Holdings Ltd (ASX: MYR) and JB Hi-Fi Limited (ASX: JBH).
As this time of year is an extremely important part of the year for these two companies, a weak Christmas could ultimately lead to an underperformance in FY 2018. In light of this, I would suggest investors avoid these two retailers.
But I don't believe investors should stay clear of the retail sector completely. In fact, I believe a number of retailers are well positioned to continue growing unabatedly. Here are three:
Noni B Limited (ASX: NBL)
This retail group is responsible for the W Lane, Table 8, BeMe, and the eponymous Noni B brands. As these retail brands cater to the mature women's market I believe they are less likely to be disrupted by online retailers such as Amazon. Furthermore, Australia's ageing population means that this is a fast-growing demographic.
Premier Investments Limited (ASX: PMV)
Thanks to its Smiggle and Peter Alexander brands I believe the retail conglomerate could be a great option for investors. I feel these two niche brands are relatively immune from Amazon's arrival due to their brand power. However, with the company's annual general meeting due to occur later this week, it may be prudent to hold off an investment until after it has provided a trading update.
Super Retail Group Ltd (ASX: SUL)
The company behind the Super Cheap Auto and Rebel Sport brands has worked hard to prepare for the launch of Amazon and I believe it has a great chance of competing successfully as a result. I think this makes it a great option for investors, especially at just under 11x trailing earnings and providing a trailing fully franked 5.9% dividend.
