On Cyber Monday, retail stocks enjoyed solid gains thanks to strong online sales on Black Friday. Even as in-store traffic and footfall declined, online purchases enjoyed a strong improvement. Meanwhile, initial estimates indicate that Cyber Monday likely was the biggest online shopping day in U.S. history.
However, traditional retailers have managed to remain relevant using a shift in strategy. An omnichannel approach, utilizing methods such as click-and-collect, means that they are unlikely to miss out on the windfall in sales during the holiday period. Investing in such select retail stocks still looks like a smart option.
Online Sales Hit Record High on Black Friday
Per Adobe Analytics, Black Friday raked in $6.22 billion in online sales, hitting a new high and increasing 23.6% from the year-ago period. As online sales continue to increase, both sales and traffic in-store continue to decline.
Per preliminary analysis by RetailNext, sales in stores on Thanksgiving and Black Friday fell 4% and 7%, respectively, from last year.
Further, online sales from Wednesday to Black Friday increased 26.4% year over year to $12.3 billion, per Adobe. The spurt in Black Friday online sales helped the SPDR S&P Retail ETF (XRT) gain 2% on Monday.
Cyber Monday Sales to Touch $7.8 billion
Meanwhile, shares of Amazon (AMZN – Free Report) gained 5.3% following projections that Cyber Monday sales will touch $7.8 billion, per Adobe Analytics. This is almost 18% higher than last year’s figure, making it the largest online shopping day in the United States.
Meanwhile, online sales increased 28% year over year to $3.7 billion on Thanksgiving Day. The day witnessed the sharpest growth in online sales in history. Nearly $1 billion in sales originated from smartphones.
Traditional Retailers Stepping up Their Game
It isn’t just Amazon which gained following reports of a surge in online sales. Shares of GameStop (GME – Free Report), American Eagle Outfitters (AEO – Free Report), Best Buy (BBY – Free Report) and Target (TGT – Free Report) gained 8%, 5.5%, 2.9%, and 2.8%, respectively.