RBC Capital Markets says that as consumer demand weakens, competitive dynamics in European retail are likely to favour operators with deeper structural strengths. In its view, market share will increasingly accrue to retailers that can sustain volumes and margins in tougher conditions - with NEXT and Inditex singled out as the most clear-cut long-term beneficiaries.
NEXT
RBC describes NEXT as a core "structural compounder." The firm points to a highly scalable online platform and an efficient logistics footprint that together enable the company to grow even when overall demand softens. NEXT's broad assortment and value-oriented pricing mix are seen as well-matched to a consumer base becoming more price conscious.
The brokerage underscores the company's distribution execution and single-parcel economics as differentiators that give it an advantage relative to newer, AI-driven shopping models. Alongside steady top-line progression and demonstrated margin resilience, ongoing share buybacks are cited as factors that make NEXT a high-quality, defensive growth story. RBC notes the stock offers a more attractive entry point following a recent market selloff.
Inditex
Inditex is characterised by RBC as a best-in-class operator with a track record of expanding market share during downturns. The firm's fast-fashion approach and frequent product "newness" allow it to keep assortments fresh, supporting full-price sell-through and protecting margins.
RBC highlights Inditex's nimble supply chain and design capabilities as key to responding quickly to evolving trends. Strong execution in important markets such as Spain and the United States is presented as evidence of the durability of its growth profile. The brokerage also points to a robust balance sheet and global scale as sources of additional resilience, concluding that Inditex is a high-quality compounder whose structural advantages are likely to widen if consumer spending softens further.
Both names are presented as examples of retailers whose operational strengths - in digital commerce, logistics, product turnover and capital allocation - position them to capture share where weaker peers may struggle.