Market Sneak Peek: Could Uptick In Holiday Shopping Be an Early Gift?
November 28, 2022
By Michael List, CFP®
Investment Management Officer
While the world looks ahead to the next season, I want to take a moment to look back. I hope everyone had a happy Thanksgiving, that you were able to celebrate with others and reflect on all that you are grateful for.
A look at last Friday's shopping activity provides investors and retailers a glimpse at consumer sentiment for holiday spending. While “Black Friday” has turned into an entire shopping season, last Friday will still give us a clue about consumer spending expectations for retailers during the fourth quarter.
How much did people shop on Black Friday?
Early reports show two to three percent growth for both in-person and online shopping. In-person activity had gains in both traffic and total sales, with the strongest growth (up 12% from last year) coming from apparel, electronics and restaurants. Online sales for the day exceeded $9 billion. In total, it looks like a good start, with an increase in traffic, volume and sales with activity continuing over the rest of the weekend as well.
Will Cyber Monday keep the trend going?
That brings us to today — Cyber Monday — when online retailers entice shoppers with more online deals. Expectations are for online sales to exceed $11 billion today. Overall, the National Retail Federation expects a record 166 million Americans to shop in-person or online between Thanksgiving Day and Cyber Monday this year.
This would match other economic data, indicating inflation has affected everyone, but consumers have still been able — and willing — to spend. We are also hearing fewer concerns about supply chain problems or lack of merchandise. This should allow retailers to see sales growth and allow them to work through some of the excess inventories they accumulated over the past year.
It’s hard to believe it will be December this week. Preparations for the upcoming holidays are just beginning. We are grateful you have entrusted us with your financial assets and the opportunity to help you achieve your goals. If you need assistance with year-end planning or cash for spending and giving, reach out to a financial advisor today.