It is officially the holiday shopping season! Black Friday, the day after Thanksgiving, is seen as the first official day of the Christmas shopping season. Every year, consumers scour the various Black Friday ads in hopes of finding some crazy good deals. Over the past few years, some retailers have changed their strategies for offering deals to consumers. Some start their Black Friday deals on Thursday, referred to as ‘Gray Thursday’, and some offer deals the entire week of Thanksgiving.
Regardless of the sales techniques, this time of year is crucial for U.S. retail companies. Most derive a good portion of their annual sales during the holiday shopping season. So if retailers have a good holiday season, this bodes well for retail stocks and for the U.S. economy since consumer spending accounts for over two-thirds of economic growth.
So what are the predictions for the 2016 holiday shopping season? According to the National Retail Federation, holiday sales are expected to increase 3.6% this year. For just Black Friday, shoppers are expected to spend $27 billion according to consulting firm Customer Growth Partners.
Today is Cyber Monday, which is one of the biggest online shopping days of the year. Have you started your holiday shopping yet? With wages in the U.S. starting to pick up over the past couple of months, consumers should have more money in their pockets to spend this holiday season. If consumers are spending this holiday season, it bodes well for economic growth for the 4th quarter of 2016.
On behalf of everyone in Wealth Management, we hope you had a Happy Thanksgiving!Back to Articles