Online shopping in the U.S. is picking up this Thanksgiving, with sales climbing about 4% during the first half of the holiday, compared to a rise of 2% from last year, according to Salesforce (CRM) data cited by Reuters. This data indicates that the steep discounts offered by retailers are appealing to shoppers.
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The peak online shopping window on Thanksgiving is expected to occur between 7 p.m. and midnight EST, with 35% of sales projected to happen during this period, according to Salesforce.
Salesforce revealed that Thanksgiving Day online sales reached $7.5 billion in 2023, up 1% year-over-year. Meanwhile, CRM expects Cyber Week to generate $311 billion in global sales.
Retailers Are Adopting Aggressive Strategies This Year
Amid macroeconomic woes and persistent inflation, retailers have adopted aggressive strategies this year, rolling out early promotions and expanding their holiday deals to attract frugal shoppers. Best Buy’s (BBY) CEO Corie Barry acknowledged that while the electronics giant anticipated lower demand between sales events, the decline was sharper than expected. Similarly, Target (TGT) has noted a stronger-than-expected response to its discounts.
Meanwhile, department stores like Kohl’s (KSS) and Macy’s (M) are cautiously optimistic about their annual forecasts amid slowing sales. In contrast, brands like Abercrombie & Fitch (ANF) and Gap (GAP) have raised their outlooks, driven by strong demand for trendy apparel. Furthermore, retail giants like Walmart (WMT) and Amazon (AMZN) are also likely to benefit, making for a mixed holiday season.
Are Retail Stocks a Good Investment?
For investors interested in the retail sector, we’ve rounded up retail stocks that Wall Street analysts are either bullish on or cautiously optimistic about, using the TipRanks Stocks Comparison tool.
