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Is Holiday Season Headed Toward a Retail Bonanza?

Studying market data including diagrams

After a subdued Black Friday performance at brick-and-mortar stores dampened the retail fervor, the markets turned buoyant again on positive sales data for November that indicates sufficient momentum in the economy. After all, the holiday season is not over yet and Christmas is right around the corner.

Retail sales were up a modest 0.2% in November, following a 0.1% rise in October, representing the largest increase since July. So retailers should be on their toes, with promotional events, free shipping on online purchases and heavy discounts, to tap the willingness of consumers to spend more.

Black Friday did not turn out to be a blockbuster one as retailers had adopted and showcased their promotional strategies well in advance. This took some of the charm away from the Thanksgiving weekend, which is seen as the biggest holiday shopping weekend. Moreover, increased online shopping resulted in lower footfall in stores.

According to figures released by ShopperTrak, sales at brick-and-mortar stores on Black Friday declined 11.9% year over year to $10.21 billion. Sales on Thanksgiving came in at $1.76 billion, down 12.5% from 2014. On the contrary, Thanksgiving and Black Friday online sales touched a new record this year, surging 18% to $4.47 billion, per Adobe. It seems that customers have decided to beat the in-store rush and shop earlier or buy from the comfort of their homes.

With a rebounding economy, falling unemployment rate and gasoline prices, higher consumer confidence and improving consumer spending, the retail space is brimming over with optimism. ShopperTrak reiterated a sales increase of 2.4% at brick-and-mortar stores this holiday season.

The holiday season is no less than a battlefield for retailers who vie for consumer attention. Retail giants such as Macy's, Inc.M , Target Corp.TGT , Wal-Mart Stores Inc.WMT , Amazon.com Inc.AMZN and Best BuyBBY will go the extra mile to attract bargain hunters. As retail companies move heaven and earth to win the hearts of shoppers, the wait for the winner will surely be an interesting one.

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WAL-MART STORES (WMT): Free Stock Analysis Report

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MACYS INC (M): Free Stock Analysis Report

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TARGET CORP (TGT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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