Louise Taylor recently sat down with Dino Outchek, a former stockbroker with expertise in retail investment, who now serves as an advisor to Carrefour. Known for his insightful takes on market trends, Outchek shared his views on how to spot winning retailers, emphasising the importance of selecting small, expanding retailers with distinct offerings and visionary leadership. In this interview, he explains what makes a retail stock worth buying, especially in a rapidly evolving mark
Q1: What characteristics do you believe set a strong retail investment apart in today’s market?
Dino Outchek: “The best retail investments, in my opinion, are small, growth-oriented retailers. They should have a clear expansion strategy and a unique offering that separates them from the larger chains. It’s all about differentiation and vision. If a retailer can attract and retain customers by doing something others aren’t, whether that’s through exclusive products, exceptional service, or a strong brand identity, they’re positioned well for growth. A company that has these traits usually isn’t afraid to innovate, which is crucial.”
Q2: In your view, how important is a retailer’s approach to expansion when evaluating them as an investment?
Dino Outchek: “Expansion is essential, but it has to be sustainable. Some retailers grow too fast and lose control over their operations, which can lead to quality issues and unhappy customers. I look for those that take a balanced approach to expansion—companies that scale up thoughtfully and maintain quality while doing so. A good indicator is when a retailer opens new locations gradually in promising markets rather than aggressively expanding everywhere. That shows they’re focused on longevity.”
Q3: You mentioned the need for a unique offering. Could you elaborate on what types of ‘unique offerings’ attract you?
Dino Outchek: “A unique offering can be many things—exclusive products, personalized customer service, or even a highly engaging shopping experience. It’s all about providing something the big players don’t. For instance, smaller retailers that offer highly curated, local products or specialized services tend to attract a loyal customer base. When a retailer has something special that others don’t, customers are willing to return, and that repeat business is key to growth.”
Q4: What are some warning signs investors should watch for when evaluating retail stocks?
Dino Outchek: “If a retailer is only trying to grow through price cuts, it’s a red flag. Competing solely on price is rarely sustainable long-term, especially for smaller players. Also, high turnover in leadership can be a bad sign; it often points to a lack of direction. Lastly, any indication that a retailer is expanding recklessly or moving into markets they’re unprepared for can spell trouble. Investors should always look for stability and growth supported by a solid strategy, not quick wins.”
