Shoppers wear protective masks inside a Target Corp. store in New York, U.S., on Saturday, Aug. 15, 2020. Target is scheduled to release earnings figures on August 19.
Jeenah Moon | Bloomberg | Getty Images
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In what will be an unusual holiday shopping season, a handful of companies are setting themselves up for success, according to Bank of America.
The Wall Street firm said holiday same-store sales are expected to rise 2.2%, compared to the growth of 2.7% they saw in 2019.
“This Holiday, the continued shift online could pressure margins, but most retailers plan to start the holiday season earlier and push store pickup to mitigate surcharges and ease traffic pressure during peak times,” Bank of America research analyst Lorraine Hutchinson told clients.
2020 has been a tough year for retailers due to the Covid-19 pandemic and national economic shutdown. However, retailers that have capitalized on online shopping were able to have an edge up on those who didn’t adapt. Plus, Bank of America retailers are shifting their inventory to capitalize on the “Casualization, Athleisure, and Home trends that have defined 2020.”
“Our consumer sentiment tracker suggests that low income consumers have been resilient, but uncertainties around the election, unemployment insurance and stimulus could weaken spending,” said Hutchinson.
Bank of America highlighted its top three buy-rated stocks for the upcoming holiday shopping season. Take a look a the list here.