Black Friday remains a major event for retailers, even as it competes with early online sales and holiday deals. Many stores, like Mall of America, are banking on traditions and in-store excitement to drive foot traffic by offering perks like gift cards and exclusive items, according to AP. In addition, Adobe Digital Insights, a division of software company Adobe (ADBE), predicts better bargains during the five-day Black Friday weekend, with discounts peaking on Cyber Monday.
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However, retailers are feeling the pressure this year as there are five fewer shopping days between Thanksgiving and Christmas. As a result, Black Friday will be a key moment for stimulating sales momentum, especially for stores like Target (TGT) and Best Buy (BBY), which are rolling out doorbuster deals to attract shoppers.
Still, even with fewer shopping days this year, holiday spending is expected to grow 2.5% to 3.5% year-over-year, with online sales already up 9.6% in November, according to Adobe. Analysts will use this weekend as a critical indicator of consumer spending trends for the rest of the season.
Walmart Is Firing on All Cylinders
Interestingly, Walmart (WMT) is entering the holiday season on a strong note after better-than-expected third-quarter sales for toys, home goods, and groceries. And to prove that it is firing on all cylinders, Walmart recently announced that it will reward its corporate employees with substantial bonuses, according to a Bloomberg report. This suggests that the firm is confident in its ability to continue producing solid results until the end of the year.
Meanwhile, competitors like Target have seen slower sales in non-essential categories as a result of cautious consumer spending. To make matters worse, the company is also having company-specific issues. Indeed, Target has seen a growing number of complaints recently due to things such as missing items, long lines, and cheap products. This is while prices on essential items like groceries remain elevated, which has led to customers looking elsewhere for better deals.
Is WMT Stock a Good Buy?
Turning to Wall Street, WMT stock has a Strong Buy consensus rating based on 26 Buys and two Holds assigned in the last three months. At $96.65 per share, the average Walmart price target implies a 5.2% upside potential. This is after a 79% rally in its share price over the past year.
