Retailers including Amazon, Macy’s and Kohl’s saw their stocks surge in trading Friday (Nov. 24) after retailers enjoyed strong sales during Black Friday, setting the stage for a robust holiday season.
According to a Reuters news report, strong sales during the deeply discounted sales weekend is a good early indicator that spending is on track to rise this year. Adobe Analytics, which tracks the online transactions at 100 of the retailers in the U.S., said consumers spent $5.03 billion on the internet by the end of Black Friday, up 17 percent year-over-year.
Meanwhile, digital media company GlobalData told CNBC that, based on preliminary data, Black Friday sales increased the most in six years. “I think department stores had a reasonable time of it, better than last year,” said Neil Saunders, GlobalData’s retail managing director.
Kohl’s chief executive Kevin Mansell said the company saw “record-breaking” sales, both online and in stores. Kohls.com had more than 16 million visitors during Black Friday, setting a record in terms of traffic and sales. It also fulfilled about 40 percent more orders that were purchased online and picked up at the store.
Amazon was also a winner; according to GBH Insights, the eCommerce giant claimed to garner close to half of all online sales with U.S. shopping at “record levels,” per a Business Insider report. Among the hot items were the Amazon Echo Dot, the Fire TV Stick with Alexa voice remote, the Instant Pot DUO80 pressure cooker and the 23andMe DNA Test, reported Business Insider.
Retailers are betting that low unemployment and the increase in home values will drive people to the stores this holiday season. That drove up stock prices on Friday for both online and offline retailers. “Instead of curtailing spending, consumers are coming out of their bunker,” said Chad Morganlander, a portfolio manager at Washington Crossing Advisors, in the Reuters report. “Nonetheless, the trend of retail preferences of the consumer is not going away.”