Epic Stores offers a growth opportunity in a sector that benefits from a weak economy.
The resale sector has recently outgrown the general retail sector even during economic expansion.
The stock is highly risky due to the need to secure additional growth capital and ongoing quarterly losses.
The company needs to prove it can profitably scale operations before aggressively investing in the concept due to capital needs.
As the stock market falls and investors debate whether the global economy is headed towards a recession, the dollar and thrift stores offer an intriguing recession play. If the economy does slow down, these type of stores should benefit from consumers with tight budgets looking for quality products at a discount.