A strengthening U.S. dollar works well for retailers who are almost exclusively selling in the U.S. and buying their product abroad. Jan Kniffen, CEO of J.Rogers Kniffen Worldwide Enterprises, spoke on CNBC this week about the effect a stronger U.S. dollar will be for retailers. “Retailers who only sell here but buy in other countries will benefit the most. Who are we talking about? Dollar Stores, Macy’s, Target, Kohl’s, J.C. Penneys.”
The main benefit for these retailers is that they purchase product from other countries and re-price product each time they place an order, so orders are less expensive each time the U.S. dollar grows stronger.
The same retailers who benefit from falling U.S. energy costs will benefit from the strong U.S. dollar. “The domestic retailers who are not high end and more middle market will benefit from falling gas prices as their customers have more money to spend.”
Source: CNBC
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