Good afternoon everyone, except the ballot counters in Nevada who have decided that this is their moment to relish in attention from the entire country.
To continue our theme this week of distracting you from election news, today we are going to talk about the jolliest topic we can think of, Christmas!
So put on some Michael Bublé, pull on a festive sweater, and start decorating way too early. Let’s take a look at some predictions of the companies that will win in shoppings trends this Holiday season.
📰 In the Headlines
Breaking down some of this week's biggest stories
Translation: It’s a golden era for those who have invested in gold
For those who read our newsletter on Tuesday, you’ll know that the price of gold tends to act inversely with the value of the US dollar. As our economy starts to feel the impact of the increase of currency in circulation from our stimulus checks, along with the possibility of another coming soon, the price of gold is reaping the rewards.
Translations: Movie theaters are sticking around
After months of story after story that pointed at the downfall of movie theaters, it's nice to get a piece of good news. The economic shutdowns have been disastrous for the movie theater industry, and many have speculated whether this was just speeding up an inevitable pivot to at-home steaming. This growth in private watch parties shows that despite our affinity for staying home and in sweatpants, we shouldn’t count the movie theater industry out quite yet.
Translation: We might be heading for another housing bubble
When looking to buy a house, there are many factors you need to consider, one of which is the interest rate you get on your home loan, or mortgage. Of course you want a low interest rate, so many people are starting to look at buying a house. Keep in mind though, that increased demand without increasing supply can cause a price bubble. As the senior economist for Realtor.com puts it “The lack of available homes is pushing listing prices considerably higher than a year ago.”
🎅🏼 The Best Way to Spread Christmas Cheer
Christmas came a little early this year, in the form of a shopping trends report from Salesforce.
This sales tech giant does more than just build ugly skyscrapers and host conferences that take over all of downtown SF for a month. Their software tracks and facilitates sales for thousands of businesses in every type of industry.
This year, Salesforce released a Shopping Index that covers the trends they’ve seen throughout 2020. We took a deep dive into their shopping report and took a look at what it indicates about who will be the winners of the holiday season.
👟 Active Wear and Sports Equipment
We’ve talked about this in a few newsletters, but its worth saying again; athletic wear, workout equipment, and outdoor gear have been shining this pandemic. While many other shopping trends had a growth spoke in Q2 and then declined, activewear and sporting equipments’ growth has continued steady. Plus, there’s no easier holiday gift for your brother's girlfriend than a yoga top from Lulu.
- Athletic Wear Stocks: Nike, LuluLemon, Escalade, Inc
- Sporting Good Stocks: Nautilus Inc, Vista Outdoor Inc,
📱 Mobile Phone Shopping
Sometimes it's not what you buy but how you buy it. This report shows that shopping on phones has overtaken orders via computers, and their lead is continually growing. Stores that will be winning this holiday season will be the ones serving us with a great mobile shopping experience.
- Retailers with great mobile shopping experiences:
Nordstrom, Amazon, American Eagle Outfitters Inc, Sephora
🌮 Grocery Shopping & Food Delivery
Our tendency to take an extra helping around the holidays is not news to anyone, but this report shows 2 interesting trends that support the idea that the holidays are going to be great for the companies that keep us feeling full.
The first is that for the past 3 years, food & drink companies have delivered their best numbers in Q4 (aka, the holidays). Second is that the Food & Drink industry has seen a 150% increase in digital spending, and has maintained a growth rate above 100% for 2 quarters in a row, indicating that digital shopping and food delivery is a trend rather than just a fad.
- Digital Grocery Shopping: Walmart, HelloFresh, Delivery Hero
- Food Delivery Apps: Uber, Grubhub, Dominos
😊 One Final Thought
We make jokes about the anxiety we are experiencing right now as a country, but in times of high stress and uncertainty, taking care of our mental health is just as important as managing our stock portfolios. So today, take at least 10 minutes today to get away from your computer and phone, step outside, and breathe some fresh air.
For some tips, check out the Harvard Business Review’s Self-Care Guide to Help You Get Through The Election.
Word of the Day
Brick and Mortar
(Adj.) A business's physical store where they sell products and interact with customers face to face.
Some companies are only brick and mortar, and rely on in-person shopping for all their sales. In the COVID economy, many companies are opting to do a hybrid of brick and mortar & e-commerce sales, while others are closing down their physical locations for good.
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