Shares of retailers and other consumer-services companies rose as some earnings came in stronger than feared. DSW shares rose about 18% after the shoe store posted same-store sales growth, or sales in comparable locations open for a year or more, for the first time in six quarters. Shares of Coty declined, however, after the consumer-goods seller's purchase of Procter & Gamble brands seemed to backfire. The New York-based company posted a surprise quarterly loss Tuesday that executives attributed largely to sinking sales of those products, which include CoverGirl and Max Factor cosmetics and Clairol hair dye. One brokerage said Amazon.com's purchase of Whole Foods underscores the "omnichannel" approach that all grocers eventually will take, with bricks-and-mortar sales, online stores and some hybrid of both likely being offered. "At just 3% of industry sales, online grocery penetration remains low," said analysts at brokerage Morgan Stanley, in a note to clients. "However, we expect the segment to grow, with food retailers increasingly focusing on the online channel in light of Amazon / Whole Foods. Consumer resistance to online grocery is decreasing, with 37% of consumers 'very unlikely' to purchase food online, down from 47% two years ago."
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(END) Dow Jones Newswires
August 22, 2017 16:29 ET (20:29 GMT)