As the busiest shopping season of the year approaches, consumers are getting ready to open their wallets and swipe their cards away. However, this season is not only exciting for shoppers to get their hands on major purchases, but it’s also one to look forward to by investors and traders. This includes major retailers, electronic retailers, beauty and jewellery retailers, restaurants, and online retailers.
How does Black Friday Affect Stocks?
Black Friday is not only one of the most important spending events in the United States, but also the name was given to the first day after Thanksgiving. Every holiday season, forecasters make predictions about the volume of sales on Black Friday, and whether or not those expectations are reached or surpassed can affect investor confidence.
It can also be a reflection of the current state of the economy. If consumers are tightening their belts, especially given the rising inflation, there could be a possibility of retail sales being dampened this Black Friday, hampering consumer sales figures.
Suppose consumers end Thanksgiving on a high by spending a lot of money on Black Friday, and retailers show substantial growth in sales figures. In that case, investors may have their first indication that the holiday shopping season is looking like it’s going to be particularly profitable, with consumers being willing and able to spend more money. This confidence can be reflected in the retailers’ stock prices that post strong sales.
Here are some of the stocks that could get a boost on Black Friday:
- Walmart (NYSE: WMT). Walmart Inc. is a multinational retail corporation based in the United States that currently runs a chain of hypermarkets, discount department stores, and grocery stores. During times of inflation when there is a need for people to tighten their belts, consumers’ spending behaviour tends to lean towards low-cost shops. Some discount and larger retailers have benefited from such behavior. Frequent shoppers at Walmart will be glad to know that Walmart’s Black Friday deals have already started from 21 November 2022.
- Amazon (NASDAQ). Amazon is the world’s largest online retailer and a prominent cloud service provider. They sell all sorts of things including books, music, movies, housewares, electronics, toys and many other goods. Amazon’s Prime membership has grown to over 200 million and the company has mentioned in its recent earnings report that members are spending more. More spending means more revenue for the company. Amazing early discounts are already underway!
- Target (NYSE). Target Corporation is an American big box department store chain with stores in all 50 U.S. states. They are known for selling a variety of food, household goods, clothing and electronics. Target released its press release last Thursday, 17 November 2022 informing the public that they will be unveiling its biggest Black Friday Week Sale Ever. Target’s Black Friday deals are now in full-swing.
- Macy’s (NYSE). Macy’s is an American chain of high-end department stores known for selling a wide range of merchandise, including apparel and accessories for men, women and children, cosmetics, home furnishings and other consumer goods. This Black Friday, Macy’s stocks could get a boost because they have prepared a lavish array of deals from the latest winter essentials, to that new air fryer you’ve been eyeing! Macy’s Black Friday early access sale started on the 20 November.
- Lululemon (NASDAQ). Lululemon is a Canadian multinational athletic apparel retailer known for making technical athletic clothes for running, yoga, working out and other types of sports. According to the Kantar BrandZ Most Valuable Global Brands 2022 Report, Lululemon was the 4th most valuable global brand in the apparel category.
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