The abject performance of Myer Holdings Ltd (ASX: MYR) over the last 12 months, Amazon's arrival in Australia, and general weakness in the retail industry appear to have weighed heavily on investor sentiment in recent times.
But I wouldn't let this put you off investing in some of the quality retail shares on the local market that continue to produce the goods regardless of the weaker trading conditions.
Two that I think are worth considering are listed below. Here's why I like them:
Greencross Limited (ASX: GXL)
Greencross may be best-known for its network of veterinary practices across Australia and New Zealand, but it also has a strong retail presence through its Petbarn brand. In FY 2017 the company achieved like-for-like sales growth in its Australian retail business of 4.3%. This was driven by its increasingly popular loyalty program and the roll out of in-store clinics.
At the last count 17% of its retail stores had a clinic inside, but this is expected to grow to over 60% in the future. I expect this to support its earnings growth over the coming years. As of its AGM late last year, Greencross had seen an 8.5% increase in total sales and a 4.4% lift in like-for-like sales for the first 16 weeks of FY 2018.
Lovisa Holdings Ltd (ASX: LOV)
I think that this fast-growing jewellery company could be a great buy and hold investment option largely due to its international expansion plans. After conquering the Australian and South African markets, Lovisa opened its first store in the United States last year.
If the company can recreate its domestic success in the lucrative U.S. market then it has the potential to provide it with above-average sales growth for many years to come. I'll be looking out for an update on its performance in the U.S. on Wednesday when its half-year results are released.