Holiday spending projected to hit new record this year
Published On Oct 15, 2024, 2:50 PM
The National Retail Federation projects that holiday spending will reach between $979.5 and $989 billion this year, marking a growth of about 3.5% compared to last year. This increase is attributed to the rise in e-commerce, which is expected to account for nearly $298 billion of total sales. Despite a shorter shopping season and economic pressures, consumers' household finances appear stable, although spending is expected to be more cautious. The prevalence of discounts and 'buy now, pay later' services will likely boost online spending significantly this holiday season.
Stock Forecasts
AMZN
Positive
With holiday spending projected to break records, particularly in e-commerce, companies heavily reliant on online sales could benefit. Retail stocks, especially those in e-commerce like Amazon, might see a positive trend.
TGT
Positive
Consumer-facing retailers who adapt to cautious spending, such as Target, may perform well during this shopping season. Their ability to attract consumers who are looking for value will be key.
XRT
Positive
Given the growth in the retail sector, retail ETFs, such as XRT which focus on various retail stocks, are also positioned to benefit from the overall increase in consumer spending.
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