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Attention Investors: Here Is What You Need To Know About Last-Minute Shoppers

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Attention Investors: Here Is What You Need To Know About Last-Minute Shoppers

Today is Friday, Hanukkah begins Saturday and Christmas is on Sunday. Naturally, it is too late to place an order online (in most cases) but thankfully shopping malls still exist and retailers are more than eager to accommodate the last-minute crowd.

CNBC's Courtney Reagan noted that Friday is expected to be the third busiest shopping day of the holiday shopping season. Of course, Black Friday is the busiest day, followed by next Monday when shoppers are likely to find a good bargain on leftover inventory.

Reagan further noted that retail analysts and experts remain confident that total holiday sales are expected to rise three to four percent year-over-year although this will come at the expense of Amazon.com, Inc. (NASDAQ: AMZN)'s dominance.

Specifically, out of nearly two million receipts analyzed by Slice Intelligence, Amazon accounted for 36.9 percent of the transactions. Best Buy Co Inc (NYSE: BBY) ranked a distant second at 3.9 percent, followed by Target Corporation (NYSE: TGT) at 2.9 percent and Wal-Mart Stores, Inc. (NYSE: WMT) at 2.7 percent.

Reagan continued that retailers such as J C Penney Company Inc (NYSE: JCP) are better off selling merchandise to consumers in-store as opposed to online because their small scale in comparison to the dominant online retailers implies it is more expensive to conduct an online transaction compared to an in-store transaction.

On the other hand, some retail analysts observed that in-store promotional activity has become more aggressive than management teams had planned. Accordingly, investors should brace for the possibility of lower margins when department stores and retailers report their earnings.

Posted-In: CNBC CNBCSector ETFs Topics Media Trading Ideas ETFs General Best of Benzinga

 

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