Retail Stocks and Black Friday – Main Talking Points
- Black Friday is one of the most important days of the year for many retailers
- Recent demand concerns have flared as retail sales data has disappointed and consumer confidence ticks lower
- With the use of analytics and recent consumer trends, we can look for a few retail stocks that might outperform the broader market around Black Friday in 2019
- Stocks to watch include retail giants Amazon and Target, while Lululemon and Nike also possess unique advantages
Keep reading to learn more about the overarching impact of Black Friday on retail stocks and global growth, and which retail stocks could take the lead in 2019.
The Holiday Season and its Implications for Global Growth and Retail Stock Investors
With the holiday season fast approaching, US consumers will look to open their wallets and spend their hard-earned cash on a wide array of products. On Black Friday alone, consumers are expected to spend more than $6 billion, taking advantage of very accommodative discounts. In the weeks to follow until Christmas, about 20% of annual retail sales will be tallied according to the National Retail Federation.
In 2018, Black Friday spending cruised to a record high $6.2 billion, but traffic has begun to weaken in recent years and retail sales headed into the holiday season this year have slipped – creating concern that spending may not live up to the growth witnessed in previous seasons.
Since consumer spending accounts for more than two-thirds of the US economy, a weak holiday season can cast doubt on the health of the sector and that of the broader economy. Investors have recently expressed fear over global growth concerns, and an underwhelming sales tally among US retailers would likely reignite those fears. That being said, there
