Can Traditional Retailers Battle Online Competition? 5 Picks
Zacks Investment Research | Nov 27, 2018 07:14AM ET
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 (NASDAQ:ADBE) 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. (Read: Zacks Investment Research
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