XRT - Black Friday Bargain Bonanza For Shoppers But Retailers Face Consumer Slowdown | Benzinga
It’s Black Friday! Expect frantic buying of the best bargains at retailers across all towns and cities. But this post-Thanksgiving shopping spree will be watched closely by investors for signs that consumers are beginning to tighten their belts.
If, as many economic analysts suggest, a downturn in growth has already started, then a slowdown in consumer activity must surely follow.
The most recent retail sales data were disappointing, showing a 0.1% month-on-month decrease in spending in October following a 0.9% increase in September. This was led by a 1.7% decrease in sales at miscellaneous store retailers, which includes such names as Target Corp (NYSE:TGT), Lowe’s Companies Inc (NYSE:LOW) and Walgreens Boots Alliance Inc (NYSE:WBA).
Shares in Lowe’s have fallen 2.6% in the week since the data, while Walgreens is down 2.5%. Target shares have risen 0.5%.
Earlier this week, Lowe’s reported third-quarter earnings that beat expectations, but a disappointing full-year outlook underlined fears that consumer spending will slow this quarter.
On the same day Best Buy Co Inc (NYSE:BBY) also issued a warning: “In the more recent macro environment, consumer demand ...