If you didn’t wait in line on Black Friday to buy your kid that latest toy or gizmo this year, you weren’t alone.
Although Black Friday retail sales were up drastically from last year, they remained below 2019 pre-pandemic numbers.
According to data from RetailNext, traffic at traditional brick-and-mortar stores was up 61% from a year ago. And that is good news, but sales are still down 27% from 2019.
There are a few reasons why sales numbers were down on Black Friday compared to 2019. Fearing supply shortages, consumers began shopping early to make sure they got their Christmas gifts and desired items before a supply shortage Armageddon descended upon them, and retailers began offering early deals to beat the holiday rush.
Then there was Cyber Monday.
According to data from Adobe Digital Economy Index, consumers spent $10.7 billion on Cyber Monday, which was slightly down from last year’s $10.8 billion, but still represented the largest online shopping day this year.
Retail sales for October beat analysts’ expectations, despite high inflation and worries about declining consumer confidence.
According to the Commerce Department, the value of overall retail purchases increased 1.7% in October, the highest increase in seven months.
And excluding gas and motor vehicles, sales climbed 1.4% in October.
Thus far, rising savings and wages have been enough to overcome inflation, which has led to growth in retail sales.
And these increased numbers also mean that there are gains to be had in retail stocks.
Our Green Zone rating is “strongly bullish” on department store Dillards.
Dillard’s, Inc. engages in the retail of fashion apparel, cosmetics, and home furnishings, and other consumer goods.
Our Green Zone rating rates Dillard’s high in momentum, value, and quality. The retail chain has a market cap of $5.65 billion, with a 9.41 price-to-earnings ratio.
We believe that Dillard’s will beat the market by 3x over the next 12 months.
So don’t fear the doomsayers who throw shade at brick-and-mortars. There are still good brick-and-mortar shares to be had. And Dillard’s is one we are feeling jolly about this holiday season.