Top 3 Retail Brands Whose Success Rules the Stock Market 

At the end of August, Nasdaq reported that though many companies are struggling, there are three retail stocks to consider that will hold or increase their value. 

According to Nasdaq, “Retail stocks are not what they used to be with the rise of cheaper and much more streamlined shopping experiences that are provided by companies such as Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT).” These two e-commerce giants have caused nearly every other company in the retail industry to struggle with customer retention and competitive sale prices.

The three brands that have been able to survive the e-commerce aftermath with high returns on their stocks are Build-A-Bear Workshop (BBW), Abercrombie & Fitch Co. (ANF), and Marks and Spencer Group (MAKSY).

Build-A-Bear Workshop is a specialty retailer offering its customers the experience to build their own custom plush dolls or choose from a selection of premade plushes, primarily teddy bears. Recently, their collection has expanded to include collaborations with other franchises, such as Star Wars and Disney, along with more products and accessories than ever before.

In March, Sharon Price John, Build-A-Bear's CEO, stated in a press release that the company is proud of its "continued leadership and innovation." It has become a multigenerational brand that appeals to diverse customer demographics, from teenagers to adults. "With the growing popularity of brand enthusiasts and collectors, along with the trend of ‘kidulting’, where adults seek traditional childhood toys, the brand has put focus on appealing to a demographic that may have visited Build-A-Bear as a child and is now returning.”

Started in St. Louis in 1997, Build-A-Bear went public in 2004, and its success has led it to claim “over 500 retail locations that are corporate-owned, franchised or owned by a third party,” along with its own successful e-commerce business. Per Nasdaq's report, “The CEO also stated that they’re on track to have a record-breaking year for total sales in 2023, following 2022, which was the best year in the company’s history for annual profits.”

Abercrombie & Fitch Co. is a fashion apparel retailer and parent company to five brands: Abercrombie & Fitch, abercrombie kids, Hollister, Gilly Hicks, and Social Tourist. Its HQ is stationed in New Albany, Ohio, and it currently has over 750 locations internationally, selling products in-store, wholesale, and through e-commerce.

According to CNN, “Abercrombie’s stores are lighter than they once were and its clothes are looser. The brand has become known for its (logoless) basics, loungewear and jackets. Instead of trying to dress high schoolers for class, Abercrombie tries to outfit adults for everything from the gym to happy hour.” Additionally, the company's “second-quarter earnings, which beat expectations and sent the stock soaring by 24%,” are a huge win, and its share price increased by 157% over the past year.

Marks and Spencer Group is a U.K.-based retailer that’s primarily a grocery supermarket but also carries home products and apparel and offers financial services. Business looks good for the company, as its "share price over the last year has surged by 78% due to consistency and strong financial results." Additionally, its "recent annual financial statement reported revenue growth of 10% and net income increased by 18% compared to last year.”

All three companies have been "performing substantially better than other retail stocks," according to Nasdaq, and they show no signs of slowing down.