TThe struggling retail sector is expected to record top sales this holiday season, according to the National Retail Federation (“NRF”). Retailers are also eager to make the most of important days like Black Friday, Cyber Monday, and Christmas Eve.
After being hit hard during the peak of the pandemic in recent years, the retail sector has rebounded somewhat, it still has a long way to go to return to pre-pandemic levels. It could get a little easier with this holiday season which is expected to give sales a big boost.
Holiday sales set to increase
According to the NRF, holiday season sales this year are set to break all previous records in November and December and increase 8.5% to 10.5% to between $ 843.4 billion and $ 859 billion a year on the other. Holiday sales had risen 8.2% in 2020 to a record high of $ 770 billion.
Last year, holiday sales were good despite the pandemic wreaking havoc. However, with more people vaccinated and the restriction relaxed, sales are expected to jump again, shattering all previous records.
Retailers are also hoping that sales will increase significantly during this period, which has seen them embark on a wave of hiring. According to the NRF, retailers are expected to hire between 500,000 and 665,000 seasonal workers compared to 486,000 hired in 2020.
E-commerce to drive sales
E-commerce played an important role in sales growth last year. In fact, this has been the trend for the past few years, but last year millions of people relied on e-commerce because the pandemic had kept them from leaving and several physical stores also remained closed.
With the pandemic far from over and people having finally realized the convenience of online shopping, the NRF predicts that online and other non-store sales will increase by 11% to 15% to reach between 218.3 and 226 billion. dollars, up from $ 196.7 billion in 2020.
The increase in income coupled with greater savings than ever before pushes people to spend more, which is likely to help sales this time around.
Plus, the holiday season starts early this time around, with many retailers starting the holiday sales as early as September. Companies like Amazon.com, Inc. AMZN secures additional space for product storage, anticipating higher demand.
Given this scenario, it would be ideal to invest in retail stocks with a strong online presence. We have selected six actions for you. Each of the actions has a Zacks Rank # 1 (Strong Buy) or 2 (Buy). You can see The full list of today’s Zacks # 1 Rank stocks here.
Boot Barn Holdings, Inc. BOOT operates as a lifestyle chain of stores dedicated to western and professional footwear, clothing and accessories. The company’s products include boots, denim, western shirts, cowboy hats, belts and belt buckles, as well as western-style jewelry and accessories.
The company’s expected profit growth rate for the current year is over 100%. Zacks’ consensus estimate for current year earnings has improved 36% over the past 60 days. Boot Barn Holdings holds a Zacks Rank # 1.
Levi Strauss & Co. LEVI designs and markets jeans, casual wear and related accessories for men, women and children under the Levi’s, Dockers, Signature by Levi Strauss & Co. and Denizen brands.
The company’s expected profit growth rate for the current year is over 100%. Zacks’ consensus estimate for current year earnings has improved 8.2% in the past 60 days. Levi Strauss sports a rank 2 of Zacks.
Best Buy Co., Inc. BBY is a multinational retailer specializing in consumer electronics, home office products, entertainment software, communication, food preparation, wellness, health, safety, home appliances and services related.
The company’s expected profit growth rate for next year is 26.9%. Zacks’ consensus estimate for current year earnings has improved 2.7% in the past 60 days. The company has a Zacks Rank # 2.
Wholesale company Costco COST sells high volumes of food and general merchandise (including household products and appliances) at reduced prices in member warehouses. It is one of the largest warehouse club operators in the United States. The company also operates e-commerce websites in the United States, Canada, United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia.
The company’s expected profit growth rate for the current year is 7.4%. Zacks’ consensus estimate for current year earnings has improved 4% in the past 60 days. The company has a Zacks Rank # 2.
Macy’s, Inc. M is in the process of getting a complete makeover and has set out plans as part of its three-year Polaris strategy to better adapt to the new retail ecosystem. In particular, the company relies on Backstage, Vendor Direct, Store Pickup, Loyalty Program, Growth150 stores, the mobile first strategy and Destination Businesses locations.
The company’s expected profit growth rate for the current year is over 100%. Zacks’ consensus estimate for current year earnings has improved 0.5% over the past 60 days. The company sports a Zacks Rank # 1.
Tilly’s TLYS is a specialty retailer in the action sports industry selling clothing, footwear and accessories. The company distributes t-shirts, sweatshirts, jackets, shorts, pants, jeans, sweaters, swimsuits, shoes and accessories for men, women and children on its website.
The company’s expected profit growth rate for the current year is over 100%. Zacks’ consensus estimate for current year earnings has improved 26.9% in the past 60 days. He has a No.1 rank of the Zacks.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.