Some Big Companies Take Advantage Of Christmas Day Shopping
Last-minute shoppers and diners enjoyed the luxury of some of the nation’s biggest retailers being open on Christmas day.
An estimated fifty 50 million Americans took advantage of these openings, giving the already-inflated retail sector a boost.
According to SpendingPulse, retail sales from November first through December 24th are up 3.5 percent year over year.
The SPDR S&P Retail ETF (NYSE: XRT) is up four and a half percent over this period, including a 0.7 percent boost this Boxing Day, after consumers flocked to stores on Christmas day.
The nation’s largest drug store chains were open for business on December 25, including CVS (NYSE: CVS), Rite Aid (NYSE: RAD), and Walgreens (NYSE: WAG). With the vast majority of grocers closed for the holiday, these retailers were able to take advantage of consumers' basic last-minute needs. These include everything from snack baskets to milk. Most stores also carry a limited variety of gifts for last-minute shoppers.
According to Nation’s Restaurant News, six percent of Americans were expected to purchase food from a restaurant on the 25th. In terms of fast food, many McDonalds (NYSE: MCD), Subway, and Jack in the Box (NASDAQ: JACK) restaurants were open for the day. Other national favorites with locations up for business include Starbucks (NASDAQ: SBUX), Buffalo Wild Wings (NASDAQ: BWLD), Domino’s Pizza (NYSE: DPZ), and Denny’s (NASDAQ: DENN).
Big Box Retailers
In 2012, December 24 was the single biggest shopping day of the year. Regardless, the vast majority of big box retailers kept the tradition of remaining closed on December 25. As Christmas season shopping continues to rise (ie. 3.5 percent YoY growth), however, many analysts do not think it will be long before these stores are open for the day. Because many stores face negative backlash for operating on Thanksgiving, some speculate this is the cause for closure. However, once one store opens, several others can be expected to follow suit.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.