Holiday season is not only a time of celebration for shoppers but for retail giants as well, as the latter generate their highest quarterly sales during this period. The holiday season, starting from Thanksgiving and lasting through New Year’s Day, gives rise to discount wars between major retailers to attract more traffic. Investors also keep an eye on companies’ stocks, since retailers with the best deals usually attract the lion’s share of revenues, boosting the share price.
Higher Sales during Holiday Season
The US consumer staples retailing industry generates roughly 21% more sales during the holiday season compared to other quarters. However, over the last three years, Costco (COST), a key player in the consumer retail segment, saw its sales in the US fall around 3% during the fourth quarter, because the company loses out on deals and discounts against its competitors like Walmart (WMT) and Target (TGT).
No comments:
Post a Comment