Jefferies analysts named Walmart (NYSE:WMT) and Chewy (NYSE:CHWY) as two of the firm's ideas to best play the consumer space.
The analysts said they see Walmart as the best way to play the discount and specialty retail space, while Chewy is the best way to play the pet sector.
The firm conducted a survey of over 1,000 U.S. consumers to gauge future spending intentions over the next twelve months.
"The results indicate that consumers are concerned about their current financial position, big ticket spending remains under pressure, and spend is likely to continue to shift towards needs-based purchases from discretionary. However, the Pet category appears to be an area of resilience," wrote the analysts.
"We believe big ticket purchases and discretionary categories such as apparel, footwear, and home furnishings could see continued pressure going forward," they added. "With essential purchases in focus, we believe spending in the pet category is likely to be resilient over the next twelve months as ~62% of respondents said they plan no change in spending in this category, while those planning to spend more outpaced those planning to spend less."