Which ASX retail shares can survive the 'retail apocalypse'?

Here are 2 ASX retail shares including Premier Investments Limited (ASX: PMV) that have managed to weather the retail apocalypse.

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I think one of the trends for the decade just past (the 20teens, for want of a better name) has been the rise of the phrase 'retail apocalypse'.

Technological change and advancement have throughout history brought both winners and losers. Wagon makers would have derided the rise of the automobile, landline phone manufacturers – the mobile phone.

The last decade has also seen the meteoric rise of 2 trends: cashless payment methods and online shopping. Spearheaded by titans like Amazon.com, Alibaba and eBay, the combination of these trends has led to the ability for the average consumer to buy almost anything from the comfort of their own home.

While this has resulted in a lot of convenience and product availability for consumers, it has also translated into a world of pain for traditional brick-and-mortar shops. Just in the last few weeks, we have heard tails of woe from a bevy of 'big-name' stores. Myer Holdings Ltd (ASX: MYR), Jeanswest, Harris Scarfe, Bardot and even EB Games have all declared their struggles publicly – and I'm sure they won't be the last ones.

Where to invest in the retail apocalypse?

So how does one invest in ASX retail shares amid these arid conditions? Should you even bother with the sector as a whole?

Well, it's not all doom and gloom for Aussie retail. Sure, the losers still outnumber the winners and will likely continue to do so. But I think the game has shifted towards finding the diamonds in the rough. It's a whole new world, as it were.

Let's look at some of the Aussie retailers who have managed to defy the apocalypse.

There's JB Hi-Fi Limited (ASX: JBH). JB Hi-Fi was one of the most shorted stocks over the last year but has managed to prove its critics wrong. JB Hi-Fi shares were up an astonishing 84% last year after posting a 7% rise in profits and a 23% rise in online volumes. A great brand, innovative marketing and a focus on customer service has left customers wanting more.

Premier Investments Limited (ASX: PMV) has also been a winner, with PMV shares up around 40% last year. Premier Investments owns the Smiggle, Peter Alexander and Just Jeans brands – all of which have come to dominate their own unique market niches. This company managed an 11% increase in profits last year, and also boasts a strong online sales channel.

Foolish takeaway

Although the retail apocalypse has irrevocably changed the landscape for Aussie retailers, there are diamonds out there that have managed to adapt and thrive in this brave new world. It's a cut-throat industry to be in – but finding the winners has proven to be very lucrative.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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