This past June, Hedgeye Retail analyst Brian McGough warned that the acceleration for retail driven by “brick and mortar” sales would be ending soon.
As of a couple weeks ago, we officially crossed the Rubicon where McGough predicted that brick and mortar will get outpaced by e-commerce for the foreseeable future.
With a much greater margin benefit for brick and mortar versus e-comm, that shift could have a major bearish impact on retail stocks.
“This is a really critical point for retail,” McGough explains in the clip above.
“Sales are incrementally happening more in e-comm than they are for brick & mortar. That is a huge decremental margin hit and it started a couple of weeks ago.”
Watch the full clip above for more.
