Black Friday is coming: Which companies will benefit?

Black Friday is coming: Which companies will benefit?

Although time passes, the bottlenecks as well as the chip deficit are still far from being resolved. Amid increased consumer demand for goods, freight rates for goods from China to the United States and Europe have skyrocketed, forcing companies to raise prices of final products to offset at least part of the rising costs.

The question then arises: What will Black Friday be like this year? Due to huge bottlenecks at ports and labor shortages in the transportation sector, most retail companies have not been able to replenish their inventories on time, so this year’s Christmas discounts are unlikely to be just as generous as in 2019.

In fact, Macy’s, Academy Sports + Outdoors and J. Jill They have already lowered the offers. However, this does not mean that the margins of these companies are reduced, but exactly the opposite. Despite inflation, demand is still on the rise, so even with the least generous offers, sales are unlikely to drop.

Be that as it may, the big retailers, like Walmart Inc. and Target Corp., are better positioned to weather the supply crunch as they can place large orders ahead of other stores and even charter their own shipping vessels. But smaller chains can struggle to get enough stock.

Other beneficiaries could be the e-commerce such as Amazon, Etsy and Shopify. U.S. online retail sales are expected to jump nearly 60% between now and Christmas Eve, compared to 2019. Finally, while some shoppers may decide to wait with the purchase, many others seem prepared to pay more for what they get. they want.

***Igor Kuchma is a Trading View analyst


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