With Discounts on Offer, Shoppers Seem to Bite

Published On Nov 29, 2024, 5:57 PM

Preliminary data indicates that U.S. consumers were active during the Thanksgiving and Black Friday shopping around discounts, with online spending reaching $6.1 billion, a 9% increase from the previous year. Retailers observed a trend where consumers preferred cheaper items over larger purchases, likely due to ongoing inflationary pressures and high interest rates. This selective spending suggests a cautious approach from shoppers, who are taking advantage of significant discounts available during the promotional weekend.

Read full article

Stock Forecasts

TGTView TGT chart on TradingView

Positive

The increase in online spending, particularly in discount-driven items, bodes well for consumer-focused retail stocks, especially those like Target and Walmart. These retailers may see an uptick in stock value as holiday sales reflect positively on their performance and reassure investors about ongoing consumer spending trends despite economic challenges.

XRTView XRT chart on TradingView

Positive

Given the emphasis on discount shopping, companies with strong e-commerce platforms might continue to thrive, while traditional retailers that fail to adapt could suffer. This indicates potential growth for ETFs focused on e-commerce and retail sectors, particularly those that include major online players along with discount retailers.

Related News

You're 'wired' to overspend during the holidays, expert says — here's what to do about it

Nov 29, 2024, 11:07 AM

Consumers are hardwired to think more of short-term gratification than long-term goals.

XRT

Holiday Shopping Season Separates Winning Retailers From Losers

Nov 29, 2024, 5:02 AM

Consumers are seeking deals and being choosier about their spending in the crucial final weeks of the year, executives say.

WMT
TGT

Target’s Hot Santa Ads Join ‘Hot Frosty’ in Spiced Up Holidays

Nov 28, 2024, 5:04 AM

A new series of ads from Target features Kris K., a “weirdly hot” version of the beloved character, continuing a trend of spicing up holiday favorites.

TGT