Despite the fact that the economy is facing increasing inflation and disruptions to supply chains, retail sales have seen steady growth over the last three months due to job growth and increased consumer spending in the lead up the holiday season. Both are good news. Target (TGT) and Bed Bath & Beyond (BBBY) are well-positioned to see sales growth in the coming months. What stock do you think is the best buy? Read onto find out.Target Corporation (NYSE:) and Bed Bath & Beyond Inc. (BBBY) are two prominent players in the retail industry. TGT is a Minnesota general merchandise store that sells food products, household goods, accessories and apparel. It also offers electronics, beauty, seasonal and other items through its digital channels and stores. The company had approximately 1,897 retail outlets as of the 30th January 2021. BBBY, based in Union, N.J. operates a retail chain that sells home furniture, domestic merchandise and other juvenile goods internationally. Decorist is an online platform for interior design that offers personalized services. BBBY owned 1,020 retail stores by February 27, 2021.

U.S. retail sales increased 0.9%, 0.7%, and 0.9% respectively in August and October despite rising inflation and supply chain disruptions and slowdowns in third quarter GDP growth. Additionally, retailers should see a decline in weekly jobless claims, rising consumer spending, as well as the lifting of travel bans, which will continue to boost sales. National Retail Federation (NRF), predicts that holiday retail sales will increase between 8.5% and 10.5% over November, December, and January. In 2025, the global retail market will grow 7.7% at an annual rate of 2.5% to $29.45 Trillion. Both TGT and BBBY will benefit.

But while BBBY’s shares have declined 15% in price over the past six months, TGT has surged 18.8%. TGT is a clear winner with 64.7% gains versus BBBY’s 15.8% returns in terms of their past year’s performance. Which stock is better? Let’s find out.

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