Two discretionary fashion retailers stand out

Financial Journalist
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Buying shares in discretionary fashion retailers is as contrarian as it gets in this market, even though some are performing well and others are undervalued. City Chic Collective (CCX) and Noni B (NBL) stand out.

There’s a long list of reasons to avoid fashion retailers. A sluggish economy, anaemic retail sales growth and patchy consumer sentiment is a terrible backdrop for discretionary retail.

David Jones in early August warned there is a “retail recession” in Australia after an asset write down. Consumers are not spending like they used to at department stores, partly because that retail model is losing favour and partly because they are seeking cheaper alternatives at discount stores or other category killers.

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