I hope you and your family had a wonderful Thanksgiving! Here at the Scheidt house, we’re switching things up from how we usually celebrate…

I rented a condo by the beach so my family and I can get away for a few days and enjoy some quality time together. 

You can check out a holiday picture from my family's vacation on my Twitter feed here. And I'd love it if you replied with your own family picture!

You can always reach me by email at Feedback@RichRetirementLetter.com. 

Our offices are closed today to allow our staff to spend extra time with their families and loved ones. And I hope you're taking advantage of the holiday weekend to do the same.

We’ll be back to you on Monday with your next new issue of Rich Retirement Letter. But in the meantime, read on below for two retail stocks I’m excited about this holiday season.

Consumer Spending Is Still Strong

Now that yesterday’s festivities are over, Americans are on to the next holiday… 

And no, I don’t mean Christmas (although my local Starbucks has been playing holiday music for over a week now).

I’m talking about Black Friday! The kickstart to this year’s holiday shopping season will be a very interesting one both for consumers and retailers.

Of course, inflation continues to be a major concern for just about everyone these days. That’s not to mention the likelihood of a recession as we look ahead to the new year. 

Given these very serious economic threats, you might expect that most consumers would be tightening their belts and spending less on nonessential items. 

Some fear we could see a slump in holiday spending this year as consumers rebalance their budgets, which would be bad news for retailers. 

While that is a possibility, we’ve also seen data on consumer spending habits that show Americans are shopping like everything is just fine.

And the seemingly contradictory trends of high inflation and healthy consumer spending presents a unique opportunity for certain retailers this holiday season.

Allow me to explain…

Discount Retailers Lead the Way

The Commerce Department recently reported strong retail sales for October. Looking closely at the report, it's clear shoppers want good deals in today's inflationary environment.

This may be bad news for retailers that sell high-priced goods to middle-class consumers. But it's great news for companies that focus on selling quality merchandise at low prices.

We’ve talked previously about how name-brand retailers have been challenged by inventory issues. 

Thanks to the supply chain problems from last year, many retailers placed duplicate orders and now have too much stuff.

I recently wrote about how bad news for Nike's inventory is good news for two retail stocks.

You see, retailers like TJX Companies (TJX) and Ross Stores (ROST) benefit from this situation. Both of these retailers buy excess merchandise from companies like Nike. 

They're able to get a great deal because these companies simply need to get rid of their excess product — at almost any cost.

This allows TJX and ROST to mark down prices and sell great merchandise at low prices. And that business model is paying off in spades as consumers look for holiday shopping deals.

Last week shares of ROST vaulted higher after the company reported earnings and issued strong guidance for the rest of the year.

Both of these stocks are tending higher and could have much farther to go. So as we move into the holiday season, make a gift list and check it twice...

Consider shopping at discount stores like ROST and TJX (they've got some great merchandise this year)...

And make sure you're invested in the right retail areas to help grow and protect your wealth.