Retailers jump to Black Friday and Cyber Monday

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Mastercard's estimated sales on Black Friday reached $ 23 billion, up 9% from last year. According to forecasts by Adobe Analytics, Cyber Monday sales are expected to reach $ 7.9 billion, 19% more than last year.

Although it will take several weeks for the dust to settle, traditional players have emerged as the first winners of the party. According to analysts, traffic on Walmart (WMT), Target (TGT), Best Buy (BBY) and Kohl's (KSS) sites was high on Black Friday and on weekends.

Amazon (AMZN) said its US customers bought Thanksgiving's "million products" this year at Cyber Monday, including toys like L.O.L. Surprise.

Early results indicate that retailers have benefited from a strong economy, new convenient methods of spending and the disappearance of past competitors. The stock prices of the five companies rose Monday, reflecting investors' optimism for the holidays.

Although fewer buyers are present in physical stores, they are more likely to buy online and on their smartphones.

Overall, traffic in physical stores fell 1 percent between Thanksgiving and Black Friday compared to 2017, according to ShopperTrak, a retail-based consulting firm that monitors in-store traffic. The digital analytics firm RetailNext said that traffic had decreased 6.6% over the four-day weekend compared to a year ago.

"It was a big black Friday, consumers came in and retailers redoubled their inventory and service efforts," said Marshal Cohen, senior adviser to the NDP sector.

Holiday shopping always reigns

Despite fewer visits to shopping malls and more time than ever before for customers, Black Friday and Cyber Monday are essential for retailers. They realize a disproportionate share of their sales during the last quarter of the year.

Disappointing retailers during this period may face adverse consequences for investors, especially those who sell commodities such as toys, electronics and jewelery.

"A weak performance during the end-of-year shopping season puts a retailer in a fragile position," said Amanda Bourlier, an analyst at Euromonitor International, in a research report released this month.

Several factors have underpinned growth this year, starting with the economy and consumers with more money to spend.

Wages, which rose 3.1% in October from a year ago, are gradually rising after years of stagnant growth. The unemployment rate is at its lowest level in 49 years and consumer confidence at its highest level in 18 years.

"We continue to benefit from very healthy consumption and a macroeconomic backdrop," said Cornland chief executive Brian Cornell last week.

Efforts to expand online store pickup and delivery options have paid off to buyers. Online order pickups increased 73% on Thanksgiving and Black Friday compared to last year, according to Adobe.

And a drop in the price of gasoline also helps consumers, giving them more to spend more on holiday gifts.

Grasp the opportunity Toys' R & # 39; Us

The collapse of Sears, Toys "R" Us and Bon-Ton energizes the rest of the group.

More than 5,460 stores have closed so far this year, including 881 Toys "R" Us ", 472 Sears and Kmart's, and 260 Bon-Ton department stores, according to the think tank Coresight Research.

Walmart and Target ran to fill the vacant Toys & # 39; R & # 39; They stocked stocks, expanded sections in stores, and expanded their online offering. L.O.L. Analysts say Surprise and Fingerlings are among the best-selling toys.

The toy sections were occupied by both companies over the weekend, Morgan Stanley analyst Simeon Gutman said Monday. About half of the annual sales of toys take place during the holidays.

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