Retailers are already having a happy holiday season.
Traditional retailers and online stores racked up record sales on Black Friday and Cyber Monday, as shoppers turned out in droves to snag deals on items including laptops, toys, mobile devices and gaming consoles. Stores they visited included Best Buy, Macy’s, Target, and Toys ‘R’ Us. Online retail king Amazon beat all other competitors for online sales over the weekend.
Black Friday and Cyber Monday, respectively the Friday and Monday following the Thanksgiving holiday, are two of the most important shopping days of the year for retailers.
The strong sales are a welcome relief and promise a good start to the holiday buying season for so-called bricks and mortar stores that operate in physical locations. Such stores have struggled to attract shoppers in recent years.
Here are some numbers:
- Sales on Cyber Monday, a day devoted to online bargains, hit a record $6.59 billion. That’s an increase of nearly 17% compared to 2016, according to reports.
- Online retailers bagged nearly $8 billion on Thanksgiving and Black Friday, up nearly 18% compared to 2016, according to Reuters.
- Foot traffic to bricks and mortar stores decreased less than 1% on Black Friday, compared to 2016, according to industry reports. Consumers still spent a record $5 billion that day, with 54% of online shopping visits coming from mobile devices.
Good news for the slumping brick and mortar retail sector?
The strong turnout is good news for the traditional retail sector, which has experienced a steep decline in sales in recent years.
Chain stores including RadioShack, Payless Shoe Source, and The Limited have filed for bankruptcy in recent years. Once big name retailers such as Sears and J.C. Penney have also closed locations. And In the first four months of 2017, the retail sector lost 72,000 jobs, according to a recent report by Bloomberg Businessweek.
The retail industry is also one of the largest segments of the economy, generating nearly $5 trillion in sales in 2016, according to the U.S. Census Bureau.
Retail is also a big employer. About 16 million people work for U.S. retailers, or one in nine people, according to recent reports. More than 8 million people work as retail salespeople and cashiers, according to the Bureau of Labor Statistics.
- Retailers racked up record sales following the Thanksgiving holiday.
- Sales on Black Friday reached $5 billion, and $6.6 billion on Cyber Monday
- Mobile devices drove more than half of all online visits during the peak selling days.
Jeremy Quittner is the financial writer for Stash.
This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.
Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented.
Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures