BMO Capital Markets managing director Simeon Siegel sits down with Julie Hyman and Josh Lipton on Market Domination to discuss how investors should be trading retail stocks like TJX Companies (TJX) and Nike (NKE).

Siegel highlights that the TJ Maxx parent company is a disruptor in its own right, given its gains as consumers prioritize value. TJX is “stealing the volume from department stores. Their revenues came from somewhere they literally disrupted” by offering consumers quality at a value during a time when that’s what shoppers are looking for.

The analyst says the company has successfully marketed its stores as a treasure hunt. “If you go there, you put in enough time, you'll be able to walk out with something that's special, and you're not going to be expected to be waited on” like you would at more high-end retailers. “This idea of understanding when you're offering your consumer what they want and not more and not less, it sounds so simplistic, but it's important.”

Siegel shares his perspective on Nike as the athletic wear company has been in focus with its new CEO, Elliott Hill, kicking off his tenure. The analyst says “Counterintuitively, why is Elliott Hill the best person for this job? Because the three of us didn't know his name before he was in the running. Nike is a $50 billion business that's supposed to empower all the teams…there's no singular person that's going to do that.”

“The reality is [former Nike CEO] Mark Parker had a phenomenal run at the helm of this company, and most people, most consumers, don't know his name. And that's not a problem. That's that's not a bug. That's a feature.” Siegel notes that despite the new CEO’s lack of name recognition, Hill has deep ties to the brand, having started with the company as an intern.

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This post was written by Naomi Buchanan