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.
Stock Forecasts
TGT
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.
XRT
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.
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