Today is Black Friday and an estimated $3.2 billion is going to be spent by Australian consumers looking for bargains over the course of the retail sales event.
But it isn't just shoppers that can find bargains in the retail space. Investors can, too.
Right now, I believe there are a number of retail shares trading at bargain prices. Three that I think are on sale right now are as follows:
Accent Group Ltd (ASX: AX1)
Accent Group is a retail group with a focus on the footwear market. As well as owning the Platypus, HYPEDC, and The Athlete's Foot retail brands, it holds the exclusive licences for many popular international footwear brands in Australia. The company had a strong start to the year and reported like for like sales growth of 4.6% for the first seven weeks of FY 2019. Its next update will be due later today, though. So, investors may want to hold fire until after that release.
Adairs Ltd (ASX: ADH)
At just 9x earnings and offering a massive trailing fully franked 8.1% dividend, I think that this home furnishings retailer's shares are well and truly in the bargain bin right now. Especially given how management has only recently reported strong same store sales and reiterated its FY 2019 EBIT guidance of between $47.5 million and $51.5 million. This will mean year on year growth of between 4.9% and 13.7%. Incidentally, one of its directors has taken advantage of the cheap price to top up his holding this week.
Super Retail Group Ltd (ASX: SUL)
Another great option in the retail sector could be Super Retail Group. This retail group is responsible for popular brands such as Rebel, Super Cheap Auto, and Macpac. All these brands have had solid starts to the year and recently reported positive same stores sales growth year to date. Because of this, I think Super Retail's shares could be a bargain at just 10x trailing earnings. Like Adairs, they also offer a generous dividend yield. Based on its last close price, Super Retail's shares provide a trailing fully franked 7% dividend.
