Black Friday: retail stocks to watch
With every retailer bracing for Black Friday, IGTV's Angeline Ong investigates which retailers are likely to fare better than others this holiday shopping season.
(Video summary)
Sluggish holiday sales growth predicted
According to the National Retail Federation, this year's holiday sales growth is expected to be the slowest in five years. Sales are estimated to increase by only 3 to 4 percent, reaching a total of $957 billion. This is a decrease from last year's growth of 5.4 percent.
The decline in growth can be attributed to factors such as inflation and high energy prices, which have made consumers more careful with their spending. Big retailers like Walmart, Target, and TJX companies will be announcing their earnings soon, and their performance will set the tone for the holiday shopping season. However, it is expected that consumers will shift towards discount retailers like Costco and online shopping platforms like Amazon.
There is already evidence that traditional brick-and-mortar retailers are struggling, with Walmart and Macy's reporting fewer customer visits despite offering early discounts. Unusually warm weather has also discouraged people from going to stores.
Online holiday sales surge expected
On the other hand, online holiday sales in the US are predicted to increase by about 5 percent, reaching $222 billion as more and more people are choosing "buy now, pay later" options.
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