The Top 3 Retail Stocks to Buy Right Now
The Top 3 Retail Stocks to Buy Right Now
Micah Zimmerman, The Motley FoolWed, March 11, 2026 at 3:05 PM UTC
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Key Points -
TJX Companies, Walmart, and Five Below are all aggressively expanding their store footprints.
Retail stores remain a powerful growth engine when paired with strong logistics and merchandising strategies.
10 stocks we like better than TJX Companies ›
I've always been intrigued by how traditional brick‑and‑mortar stores keep finding ways to stay relevant, even as e-commerce becomes more commonplace and consumer habits evolve.
Money is tight these days, and while online sellers and other digital experiences often steal the spotlight, there's something remarkable about companies that are thriving with foot traffic and by not closing stores.
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Here are three such companies I think are solid retail stocks to consider.
Two people stand in the aisle of a retail store looking at clothing hanging on a rack
Image source: Getty Images.
1. TJX Companies
TJX Companies (NYSE: TJX) is the off-price juggernaut that thrives in chaos. With 5,300 stores across nine countries and a plan to reach 7,000, the company is opening 146 net-new locations in 2026, its most aggressive expansion year in recent memory.
The growth is diversified: 45 new Marshalls/Maxx stores, 35 HomeGoods stores, 24 Sierra stores, 13 Canadian locations, 19 European stores, including the first five in Spain, and 10 in Australia.
I recently wrote about Cava Group and how the company's aggressive new-store expansion is a key reason to be bullish on the stock, which has performed well so far this year. I see a similar opportunity with TJX, as its growth strategy and store expansion could drive the stock higher for the same reasons.
The strategic moves that matter are happening at the seams of the company. TJX's joint venture with Grupo Axo in Mexico and its 35% stake in Dubai-based Brands for Less opened two entirely new geographies through asset-light partnerships.
The aggressive scaling of Sierra, the outdoor and active lifestyle banner, is a direct competitive challenge to specialty retailers in the fastest-growing consumer category.
Smaller-format stores in rural and semi-rural markets are extending TJX's reach into communities that traditional off-price has never served.
I think the recent tariffs could actually help TJX rather than hurt it. When imports are disrupted, many brands end up with excess inventory and need to clear it quickly. They often send those extra products to off-price retailers at deep discounts, giving TJX access to more merchandise at lower prices.
CEO Ernie Herrman also pointed out that the company is attracting a large number of younger shoppers across its stores. That matters because it shows that the off-price model still has long-term appeal.
2. Walmart
Ah, the classic: Walmart (NASDAQ: WMT). If you think you're too late to invest in this retail giant, you're wrong. Walmart is no longer just the low-price leader. It has become the first traditional retailer to cross the $1 trillion market cap threshold, a club previously reserved for tech giants.
Walmart's strategy revolves around something CEO John Furner calls "Adaptive Retail." The idea is simple: Turn its 4,700 stores into mini fulfillment centers for its ecommerce operations, so products can reach about 95% of the U.S. within three hours.
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The company is also still expanding. Walmart plans to build or convert more than 150 stores by 2029. Many of these locations will follow their "Store of the Future" design, with cleaner layouts, QR codes that help customers find products, and more energy-efficient buildings. Both large Supercenters and smaller Neighborhood Market stores are part of the plan, especially in fast-growing Sun Belt cities and urban areas.
Last year, Walmart also launched an AI shopping assistant called Sparky in its app to help customers search for products and get recommendations.
By the end of 2026, the company plans to track around 90 million pallets in real time using new sensor technology. All this is helping Walmart build a bigger technological advantage over other retailers.
The outside of a Walmart building.
Image source: Getty Images.
3. Five Below
I'll admit, I was a little skeptical about adding Five Below (NASDAQ: FIVE) to this list at first. But the more I looked at it, the more it seemed like one of the most overlooked physical retailers in the U.S.
The company already operates more than 1,800 stores and believes it can grow to around 3,500 locations over time. That means its store count could nearly double.
CEO Winnie Park, who joined in late 2024, says the company plans to grow by adding more stores in markets where it already operates and by expanding into new areas like the Pacific Northwest.
The growth is already happening. More than 40 new stores are expected to open in February and March 2026 alone, including locations in California, Florida, and Texas.
Five Below is also moving into former Jo-Ann Fabrics store spaces, taking advantage of empty spots in shopping centers where other budget retailers like Dollar Tree, Dollar General, and Walmart already attract price-focused shoppers.
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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cava Group, TJX Companies, and Walmart. The Motley Fool recommends Five Below. The Motley Fool has a disclosure policy.
Source: “AOL Money”
