UBS: Sell Kohl's, Macy's, Buy "Go It Alone" Brands

COVID-19 has done more damage to department stores like KSS and M than the market realizes, forcing brands to set themselves apart.

Macy's Customer
(Image credit: Getty Images)

UBS on Tuesday issued downgrades for retail stocks Macy’s (M, $6.80) and Kohl’s (KSS, $22.33), but in so doing also laid out the new operating blueprint for fashion brands.

"To deliver steady long-term growth, we believe brands can no longer rely on Malls or Dept. Stores to drive traffic," a UBS analyst team led by Jay Sole writes. "Brands have to generate their own audiences and become destinations."

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Kyle Woodley

Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.

Kyle was previously the Senior Investing Editor for, and the Managing Editor for before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism. 

You can check out his thoughts on the markets (and more) at @KyleWoodley.