3 Retail Stocks That Are Thriving While the Rest of the Market Struggles

Consumer spending has been uneven over the last year or so. I know my personal consumer spending has taken a dip. Groceries are pricier, and the cost of living keeps rising. The market has been choppy, and most retail stocks have reflected both.

But not all of them. A few companies have spent the last year finding exactly the right product mix and format for a consumer who is both spending more carefully and shopping more frequently.

Here are three names that are actually working right now, and the case for why it's not just luck.

Image source: Getty Images.

1. Ollie's Bargain Outlet is having the best year in its history

I don't use the phrase "best year in its history" loosely. Ollie's Bargain Outlet (NASDAQ: OLLI) opened a record 86 stores in fiscal 2025. Net sales grew 16.6%. Comparable store sales grew. Its loyalty program (Ollie's Army) crossed 17 million members, up 12% year over year. And then Ollie's turned around and guided for another 75 store openings in fiscal 2026, with projected net sales approaching $3 billion. That's serious expansion from a company that still has enormous white space in the United States.

The reason Ollie's works right now isn't complicated. It sells closeout merchandise, which consists of name-brand goods that manufacturers and retailers need to move, at prices up to 70% below traditional retail. When tariffs disrupt supply chains and force businesses to liquidate excess inventory, that's more merchandise flowing into Ollie's buying channel, not less.

The company's CEO has said publicly that the closure of Bargain Hunt and Big Lots' dramatic store count reduction are direct tailwinds. Competitors are disappearing while Ollie's is accelerating.

The risk with Ollie's is execution at scale. Opening 75-plus stores a year is a significant challenge in logistics and hiring. And Ollie's is not a cheap stock relative to its earnings. But the unit economics are strong, the model is clearly working, and the macro environment is sending more customers its way.

2. National Vision Holdings is on a 12-quarter win streak

National Vision Holdings (NASDAQ: EYE) runs more than 1,200 optical retail stores across 38 states. It isn't glamorous. But the company has now posted 12 consecutive quarters of positive comparable store sales growth, and fiscal 2025 was its strongest year in recent memory. Revenue grew 9%, adjusted operating income surged 56%, and the company's margins expanded meaningfully.

What changed? Management shifted its focus toward higher-value, luxury customer segments. These are people with managed care vision insurance, progressive lens users, and external prescription holders. These are customers who visit more frequently, spend more per visit, and are less price-sensitive than the chain's traditional base.

The company also introduced smart eyewear -- specifically, Ray-Ban Meta glasses -- and reported that the rollout exceeded expectations. Vision is a healthcare adjacent category that doesn't go away in recessions. People still need to see.

National Vision is guiding for $2.03 billion to $2.09 billion in revenue for fiscal 2026, with further margin expansion. That's a company in the middle of a genuine operational transformation, not just riding a favorable quarter.

3. Grocery Outlet is resetting -- it's good for long-term buyers

Grocery Outlet (NASDAQ: GO) is the complicated one on this list. Sort of on the flipside of Ollie's, the company closed 36 underperforming stores in early 2026, acknowledged it expanded too fast, and its CEO used the word "unacceptable" about fourth-quarter results. The stock has fallen dramatically from its highs.

But here's what I think is being missed: Grocery Outlet's model, opportunistic purchasing of surplus and excess food inventory, becomes more, not less, attractive in a tariff and supply chain disruption environment. The company grew full-year net sales 7.3% and opened 42 net new stores in 2025. It's now pruning the underperformers and reallocating resources.

This is not a buy-the-recovery-story for everyone. The execution risk is real and the CEO has earned some skepticism. But for an investor with patience and tolerance for near-term noise, Grocery Outlet's core model is sound, and the reset may prove to be the best thing that ever happened to this company.

Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool recommends Ollie's Bargain Outlet. The Motley Fool has a disclosure policy.