Prepare Your Portfolio, Black Friday Is Almost Here
This week celebrates two big events: Thanksgiving and Black Friday. Lured by steep discounts and doorbusters millions of Americans are plotting to get the most from this discount shopping opportunity. For their part, many retailers are offering extended hours, opening as early as 8pm on Thanksgiving evening.
But shopping mobs aren't the point. In this video, from Kapitall's creative agency Swell, you will explore the economy of Black Friday, the importance of its sales for businesses; and the rising popularity of Cyber Monday. The numbers are staggering. When you consider the increased expectation and the adoption of mobile, it's difficult to digest the cornucopia of investing opportunities.
Will retailers beat the ever rising expectations? If so, who is to benfit?
If you're bullish on Black Friday sales exceeding last year's numbers - despite fiscal cliff concerns - consider adding these brick and mortar retailers to your watch list:
Kohl’s is offering deals ahead of Black Friday. Stores open at midnight, and in addition to several door-buster and early-bird sales, customers can shop the online deals as early as Wednesday. They are also offering $15 Kohl’s cash for every $50 purchased on Black Friday.
2. Best Buy Co. Inc. (BBY, Earnings, Analysts, Financials): Operates as a retailer of consumer electronics, home office products, entertainment products, appliances, and related services primarily in the United States, Europe, Canada, and China. Market cap at $5.13B.
Hundreds of shoppers can be seen lined around Best Buy’s stores each Black Friday. Doors open at midnight.
Similar to Wal-Mart, Target has several door buster deals and plans to open stores on Thanksgiving day, at 9pm. It has received complaints that their determination to boost sales comes at the expense of their employees’ Thanksgiving evening. Target has responded by claiming their decision to open at 9pm reflects consumers’ preference to shop right after their dinner. They also claim employee preferences are taken into account when scheduling Thanksgiving shifts.
Saks Fifth Avenue represents some of the higher end retailers, including Nordstrom (JWN), Tiffany & Co. (TIF). Like Macy’s these are common retailers in malls. But unlike Macy’s, these stores are offering consumers who might be scared away by rowdy crowds a more “white glove” experience.
Typically these high-end retailers do not offer promotions during the holidays. Although Saks made an exception last year offering discounts neat 70% off on popular brands, SmartMoney has predicted this year discounts will be “few and far between.” Saks has yet to announce their Black Friday hours.
Popular Black Friday AND Cyber Monday Plays:
Sears is offering two waves of doorbusters. The first at 8pm on Thanksgiving, and other at 4am on Black Friday. Sears members can also shop doorbusters online today through Monday.
Wal-Mart is discounting products a few hours earlier as they cut prices late on Thanksgiving day. Wal-Mart, Sears, Kmart and Toys R Us will all open stores at 8 p.m. Thanksgiving day.
Macy's has always been a popular shopping destination, especially for the mall scene. The store is a natural beneficiary of the black Friday rush to other popular shops in malls and shopping strips. Macy's is offering online Black Friday specials online Thursday November 22nd through Saturday November 24th. Stores will open at midnight through 1pm on Friday, November 23rd. Their website features several holiday deals, and a phone app so shoppers can receive in-store alerts on Black Friday specials.
Popular Cyber Monday Plays:
As items purchased online must be shipped, FedEx and UPS are without a doubt one of the biggest beneficiaries of Cyber Monday.
It's been reported that "FedEx is forecasting a 13 percent increase in shipping this holiday season as compared with last; UPS predicts a 10 percent increase; and the U.S. Postal Service expects a whopping 20 percent jump in the number of packages shipped between Thanksgiving and Christmas."
"FedEx predicts it will ship 280 packages, an increase from the 247 million packages last year." FedEx says it will add 20,000 holiday workers to handle the 13% boost
"UPS expects to move 527 million packages between Thanksgiving and Christmas this year, exceeding last year’s record of 480 million packages."
10. eBay Inc. (EBAY, Earnings, Analysts, Financials): Provides online marketplaces for the sale of goods and services, as well as other online commerce, platforms, and online payment solutions to individuals and businesses in the United States and internationally. Market cap at $60.2B.
eBay's PayPal will be in overdrive as consumers use the payment service for online shopping. eBay will also be offering "eBay Deals" on Black Friday and Cyber Monday. The particulars of the deals are "coming soon" according to its site. They will start November 19 at 8am PT.
Amazon and eBay are two of the biggest online retailers. Deals offered there will give investors an idea on trending consumer goods. According to their site, "We've been searching for the best Black Friday deals everywhere--including Black Friday deals other stores are planning--so we can bring them to you even earlier."
12. HSN, Inc. (HSNI, Earnings, Analysts, Financials): Markets and sells a range of third party and private label merchandise primarily in the United States. It operates as an interactive multi-channel retailer, offering retail experiences through various platforms, including television, online, mobile, catalogs, and retail and outlet stores. Market cap at $2.69B.
HSN, owner of the Home Shopping Network, is already a popular retailer. It will begin offering Black Friday deals and coupons as early as November 21.
13. Overstock.com Inc. (OSTK, Earnings, Analysts, Financials): Operates as an online retailer offering discount brand, non-brand, and closeout merchandise in the United States. Market cap at $330.41M.
Competitor to eBay and Amazon, Overstock's homepage features a countdown to Black Friday and advertises big discounts.