We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In spite of challenges associated with the coronavirus pandemic and fading of the initial relief package, the holiday season was quite encouraging. Though there were fears about how comfortable consumers will be in terms of purchasing at a time fraught with high unemployment and lower disposable income, Americans showed resilience. Even retailers geared up for an unusual and an expanded festive season by undertaking steps to provide a seamless shopping experience, predominately online.
Online Shopping Powered Holiday Sales
A report by Mastercard SpendingPulse indicates that holiday retail sales, excluding automotive and gasoline - from Oct 11 through Dec 24 - increased 3%. Meanwhile, online sales surged 49%, and made up approximately 19.7% of overall retail sales, up from about 13.4% in 2019. While online spending on apparel jumped 15.7%, online jewelry sales shot up 44.6%. Again, furniture and furnishings experienced online sale growth of 31%. Markedly, online home improvement sales zoomed about 79.7%.
Steve Sadove, senior advisor for Mastercard stated "American consumers turned the holiday season on its head, redefining 'home for the holidays' in a uniquely 2020 way. They shopped from home for the home, leading to record e-commerce growth." Sadove added, "Consumers shopped earlier than ever before."
To beat the COVID-19 blues, retailers kicked off holiday shopping deals earlier this year with an extended promotional period to avoid rush at stores, given the health concerns. Markedly, Amazon’s (AMZN - Free Report) two-day special Prime Day mega shopping event, Target’s (TGT - Free Report) "Deal Days" and Walmart’s (WMT - Free Report) five-day “Big Save Event” were held in October. Best Buy (BBY - Free Report) and Bed Bath & Beyond also offered lucrative deals.
Few Aspects to Bear in Mind
No wonder, the holiday season, which accounts for a sizeable chunk of yearly revenues, is a make or break for retailers. Taking into account consumers’ product preferences and growing inclination toward online shopping, due to social distancing and greater stay at-home as well as work-from-home trends, retailers replenished shelves with in-demand merchandise and ramped up investments in digitization.
Retailers have been directing resources toward advancing omni-channel capabilities, enhancing supply chain and providing faster delivery options, be it curbside pickup or delivery at home. Notably, companies deployed reasonable number of seasonal associates to deal with curbside and in-store pickup of online purchases.
Wrapping Up
Amid a tough operating environment, rise in holiday retail sales is good news for retailers. Industry experts pointed that consumers have been cutting expenditures on pandemic-sensitive services such as travel and entertainment, and redirecting the same to retail space. They even might have been tapping their savings that helped boost consumption activity.
Just Released: Zacks' 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Holiday Sales Advance 3%, Online Shopping Gains Precedence
In spite of challenges associated with the coronavirus pandemic and fading of the initial relief package, the holiday season was quite encouraging. Though there were fears about how comfortable consumers will be in terms of purchasing at a time fraught with high unemployment and lower disposable income, Americans showed resilience. Even retailers geared up for an unusual and an expanded festive season by undertaking steps to provide a seamless shopping experience, predominately online.
Online Shopping Powered Holiday Sales
A report by Mastercard SpendingPulse indicates that holiday retail sales, excluding automotive and gasoline - from Oct 11 through Dec 24 - increased 3%. Meanwhile, online sales surged 49%, and made up approximately 19.7% of overall retail sales, up from about 13.4% in 2019. While online spending on apparel jumped 15.7%, online jewelry sales shot up 44.6%. Again, furniture and furnishings experienced online sale growth of 31%. Markedly, online home improvement sales zoomed about 79.7%.
Steve Sadove, senior advisor for Mastercard stated "American consumers turned the holiday season on its head, redefining 'home for the holidays' in a uniquely 2020 way. They shopped from home for the home, leading to record e-commerce growth." Sadove added, "Consumers shopped earlier than ever before."
To beat the COVID-19 blues, retailers kicked off holiday shopping deals earlier this year with an extended promotional period to avoid rush at stores, given the health concerns. Markedly, Amazon’s (AMZN - Free Report) two-day special Prime Day mega shopping event, Target’s (TGT - Free Report) "Deal Days" and Walmart’s (WMT - Free Report) five-day “Big Save Event” were held in October. Best Buy (BBY - Free Report) and Bed Bath & Beyond also offered lucrative deals.
Few Aspects to Bear in Mind
No wonder, the holiday season, which accounts for a sizeable chunk of yearly revenues, is a make or break for retailers. Taking into account consumers’ product preferences and growing inclination toward online shopping, due to social distancing and greater stay at-home as well as work-from-home trends, retailers replenished shelves with in-demand merchandise and ramped up investments in digitization.
Retailers have been directing resources toward advancing omni-channel capabilities, enhancing supply chain and providing faster delivery options, be it curbside pickup or delivery at home. Notably, companies deployed reasonable number of seasonal associates to deal with curbside and in-store pickup of online purchases.
Wrapping Up
Amid a tough operating environment, rise in holiday retail sales is good news for retailers. Industry experts pointed that consumers have been cutting expenditures on pandemic-sensitive services such as travel and entertainment, and redirecting the same to retail space. They even might have been tapping their savings that helped boost consumption activity.
Just Released: Zacks' 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>