It is clearly evident that an increasing number of consumers are opting to shop online from the comfort of their homes and offices. Convenience, more competitive pricing and better selection-not to mention privacy when making discreet purchases-are touted as just a few of the reasons consumers are spending more time clicking online than physically going to stores.
Despite initial optimism for brick and mortar retail going into the holiday season, Macy's (NYSE:M) and Kohl's (NYSE:KSS) provided investors with fresh evidence that retail is in the midst of a digital disruption and transformation. Traditional brick and mortar retail is suffering and e-commerce is taking a bigger and bigger piece of the retail pie.
The Cyber Shopping season may have gotten off to a slow start as consumers were transfixed by election-related drama, but it has come back with a vengeance.
Monday, November 28th marks the shopping day known as Cyber Monday. It is anticipated to be the largest shopping day not only of the Thanksgiving weekend, but of the entire year. According to Adobe Digital Insights, it is expected to be the largest online shopping day in history!
May retail sales saw a 0.5% increase during the month according to the U.S. Census Bureau's retail sales report. This gain was more good news after the 1.3% increase in April, marking two months of consecutive gains. The latest retail data seems to suggest that the consumer is healthy, an important economic data point as it accounts for two-thirds of U.S. output. The latest data might also prove a complicating factor for the Federal Reserve.
This retail earnings season has seen its share of both winners and losers. Overall, the April US Retail Sales figures came in ahead of expectations, rising 1.3% versus the 0.8% increase expected. The consumer is still spending, but it has become very selective, favoring value, selection, and convenience.
Alibaba and JD.com are some of the best stocks in the sector according to Christian Magoon, CEO of Amplify ETFs.
Online retail earnings season is upon us and a number of companies in the EQM Online Retail Index (IBUYXT) are reporting on Thursday, May 5, including Chinese e-commerce giant Alibaba Group Holdings (BABA – Get Report) . The Index is tracked as an ETF by Amplify ETFs (IBUY).
A number of companies in the EQM Online Retail Index (IBUYXT) are reporting on Thursday, May 5th including Chinese e-commerce giant Alibaba Group Holdings (NYSE:BABA). The Index is tracked as an ETF by Amplify ETFs (NYSEARCA:IBUY). These earnings results may hold important clues about the overall health of the global consumer and the resilience and pace of online commerce growth.