3 Consumer Trends to Watch This Holiday Season
Retailers will be very promotional as new tech gadgets and e-commerce vie for wallet-share.
Retailers will be very promotional as new tech gadgets and e-commerce vie for wallet-share.
Bridget Weishaar: Overall, we think that the consumer is continuing to recover, and we expect holiday retail sales to be relatively strong with growth in the 3.5% to 4% range. We think that wage growth has still been pretty weak, though. So, the consumer is not quite back to where she was at prerecession and, therefore, we think retailers are going to be very competitive to get a share of her wallet.
We are looking for three trends going into the holiday season this year. The first is we expect it to be very promotional again, and I think we've already started to see this with earlier and earlier sales coming out the door from the retailers. The consumer is still responding very well to value offerings.
Second, we think there is increased competition from multiple categories. In the past, we think apparel was a very givable gift and everybody went to it. Now, we're starting to see strength in other categories, and this year we're really looking for tech and gadgets to be strong as well as things like gift certificates to restaurants.
Third, we think that the consumer is going to continue to demand convenience, and this is where e-commerce really comes into play. So, we expect e-commerce, again, to outpace the in-store growth, and we think that they are going to offer things like free shipping and fast shipping speeds.
So, when you consider all of these factors, the two stocks that we think are going to perform very well this holiday season would be Amazon (AMZN) and TJX Companies (TJX). Amazon offers a very fair deal for very fairly priced merchandise across multiple categories, and it gets the delivery fast. The second would be TJX; they own Marshalls, T.J. Maxx, and HomeGoods. They provide a variety of givable gifts in various categories, again, at that sweet spot of value.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals
and individual investors. These products and services are usually sold through
license agreements or subscriptions. Our investment management business generates
asset-based fees, which are calculated as a percentage of assets under management.
We also sell both admissions and sponsorship packages for our investment conferences
and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.