It’s fair to say it’s been a disappointing start to the year for ASX retail shares. Many of the biggest retailers have shed billions in value and watched their shares plummet lower in 2020.

But with the government looking to ease COVID-19 restrictions and the economy picking up again, are ASX retail shares back in the buy zone?

Which ASX retail shares are worth buying today?

I think in these uncertain times it’s not as simple as just buying across the sector. That’s particularly the case with retail which varies greatly and will be impacted in different ways in 2020.

I think some of the electronics retailers like JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN) could be in the buy zone.

JB Hi-Fi shares are down 8.06% in 2020, while the Harvey Norman share price has slumped 26.46% this year (at the time of writing). JB Hi-Fi has been one of the outperforming ASX retail shares thanks to increased home electronics sales.

More Aussies are working from home due to the current restrictions. As a result, JB Hi-Fi has seen a surge in computer monitor and other work-related sales in 2020, while Harvey Norman has lagged its rival given its more diversified product areas.

That being said, if you’re after an income boost this year, Harvey Norman could be an option. The ASX retail share is yielding 10.89%, but I do think that may be slashed as a result of reduced earnings in 2020.

One other option in the retail sector may be Scentre Group (ASX: SCG). Scentre is an Australia real estate investment trust (A-REIT) that operates the Westfield shopping centres across Australia and New Zealand.

Scentre shares have been smashed in 2020 and are trading 43.30% lower in 2020. That could mean Scentre shares are a bargain to be snapped up, in anticipation of shopping centres seeing increased traffic this year upon re-opening. Scentre is a top ASX retail dividend share with a tidy 8.41% dividend yield on offer right now.

Foolish takeaway

There are many ASX retail shares that could be in the buy zone right now. Given the uncertainty ahead, I wouldn’t rely solely on price-to-earnings (P/E) ratios or dividend yields at the moment. The key is to buy and hold companies with strong balance sheets and stable tenants that can weather the current storm.

More reading

• These are the 10 most shorted ASX shares
• 3 ASX shares to buy as a beginner
• Top brokers name 3 ASX 200 shares to buy next week
• Top broker urging you to buy this ASX 200 retail stock next week
• ASX shares and investing trends that could boom post COVID-19

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) edged marginally higher as a number of ASX 200 shares surged last week. 

Last week I was watching Macquarie Group Ltd (ASX: MQG), Webjet Limited (ASX: WEB) and TechnologyOne Ltd (ASX: TNE).

Macquarie announced a $2,731 million full-year net profit and a $1.80 per share final dividend. That saw Macquarie shares surge 9.57% higher last week while Webjet shares jumped 9.33% higher on Friday as the Australian Government flagged an easing of restrictions. TechnologyOne shares also surged 7.05% higher as the ASX tech share climbed to a new 52-week high of $10.24 per share.

After a big week for last week’s top picks, here are the 3 ASX 200 shares that I’ll be keeping my eye on in the week ahead.

3 ASX 200 shares to watch this week

I think the Commonwealth Bank of Australia Ltd (ASX: CBA) share price is worth watching this week. Macquarie was the last of the major banks to report its earnings on Friday, but CBA reports on a different cycle. That means we haven’t seen the same level of interest in Australia’s largest bank compared to competitors like National Australia Bank Ltd. (ASX: NAB).

CBA shares could be on the move thanks to broader positivity about the Aussie economy. The government is looking to gradually ease restrictions, which is good for Aussie businesses. It’s also good for the banks that count these businesses amongst their clients.

Another ASX 200 share to watch this week is Flight Centre Travel Group Ltd (ASX: FLT). The Aussie travel company’s shares surged like Webjet’s on Friday, but I think there’s further to go. Domestic travel restrictions could soon be eased which is welcome relief for Flight Centre and its shareholders.

Having sold its Melbourne office tower for $62.5 million last week, Flight Centre could be in a solid financial position to restructure and turn things around.

Finally, I think Xero Limited (ASX: XRO) shares are worth watching. The ASX 200 tech share has lagged behind many of its WAAAX peers in recent weeks. Xero’s accounting platform is targeted at small and medium enterprises (SMEs). With more of these businesses preparing to re-open for business, that’s good news for keeping subscription numbers high in 2020.

More reading

• ASX tourism shares on watch as government flags easing of coronavirus restrictions
• Where to invest $20,000 into ASX shares for strong long term returns
• REA Group shares are up 53% since late March. Is it too late to invest?
• These ASX 200 shares saw the biggest falls last week
• How Macquarie Group is vying to unseat CBA

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Webjet Ltd. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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