5 TSX Retail Stocks with Stable Growth

Canada’s retail environment should be expecting growth from increased disposable income due to lower gas prices

SmallCapPower | May 24, 2016: The Canadian economy is currently battling headwinds from the price of oil, as it remains the country’s largest contributor to export GDP. Specifically, while the export sector has performed worse (from the loss of oil and gas jobs), the retail sector (primarily in Ontario and Quebec) has not been affected to the same degree. In fact, retail sector employment is trending upward for the year. This may be a result of a higher disposable income due to the fall in gas prices, thereby raising demand for labor in the goods sector. As a result, we suggest investors take a look at the five retail stocks on our list that might take advantage of an improved retail environment in Canada.

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SciVacHudson’s Bay Co (TSE:HBC) – $14.80
Department Stores – Retail

Hudson’s Bay Co is a Canada-based department store retailer, with a portfolio that includes approximately nine banners, ranging from luxury to better department stores to off price, with over 460 stores across the world. The Company’s operating segments include DSG, Saks Fifth Avenue, OFF 5TH and HBC Europe.

  • Market Cap $2.7 Billion
  • Dividend Yield (LTM): 1.3%
  • ROE (TTM): 14%

SciVacNew Look Vision Group Inc. (TSE:BCI) – $30.50
Miscellaneous Specialty Retail

New Look Vision Group Inc, formerly New Look Eyewear Inc., is a Canada-based company, engaged in eye care products and services in Eastern Canada. The Company has two main segments, including New Look and Vogue Optical. Its product portfolio includes sunglasses, ophthalmic lenses, eyeglasses and contact lenses. The whole network consists of over 140 eye care stores.

  • Market Cap: $412.7 Million
  • Dividend Yield (LTM): 1.9%
  • ROE (TTM): 15%

SciVacBMTC Group Inc. (TSE:GBT) – $12.75
Department Stores – Retail

BMTC Group Inc. (BMTC) is a Canada-based holding company. Through its subsidiaries, ATBM Group Inc. (including Brault & Martineau division and EconoMax division) and Ameublements Tanguay Inc., BMTC manages and operates a furniture and household and electronic appliance retail sales network in Quebec. The Company’s sales and distribution network includes 10 Brault & Martineau stores, nine Ameublements Tanguay stores, two liquidation centers, six Brault & Martineau Sleep Gallery centers and nine EconoMax stores.

  • Market Cap: $479.1 Million
  • Dividend Yield (LTM): 1.8%
  • ROE (TTM): 19%

SciVacIndigo Books and Music Inc. (TSE:IDG) – $17.95
Miscellaneous Specialty Retail

Indigo Books & Music Inc. is a Canada-based book, gift and toy retailer. The Company operates stores in 10 provinces and one territory in Canada, and offers online sales through its Indigo.ca website. It operates about 91 superstores under the banners Chapters and Indigo, and approximately 127 small format stores under the banners Coles, Indigospirit, SmithBooks and The Book Company.

  • Market Cap: $464.2 Million
  • Dividend Yield (LTM): 0.0%
  • ROE (TTM): 8%

SciVacReitmans Canada Ltd. (TSE:RET.A) – $4.24
Apparel & Accessories Retailers

Reitmans (Canada) Limited is a Canada-based company engaged in the sale of women’s specialty apparel at retail. The Company operates six retail banners: Reitmans, Penningtons, Addition Elle, RW & CO., Thyme Maternity and Smart Set.

  • Market Cap: $211.5 Million
  • Dividend Yield (LTM): 4.5%
  • ROE (TTM): -6%

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