Christmas, world's most "Festive" holiday. Retail therapy - bring it on !
Successfully billed as the "Most Wonderful Time Of The Year" - 22nd December - Christmas has been celebrated throughout all corners of the world - especially when it comes to the commerce aspect of this festive holiday, agree ?
If we attempt to dissect and provide reasons what makes Christmas, Christmas ? Mmm... its because :
- after a full 11 months of non-stop {whatever}, its "time" to dial down a notch and spend time with people you loved
- what better way to show your love, affection and appreciation thru gifts
- don't you agree the "excitement" is ever in the air when buying a gift and wrapping it ?
- don't you agree that the "rush" & "feel good" effect when receiving a gift ?
- its that time of the year to live life a little "dangerously" by pampering oneself with "wants" instead of "needs" ?
And if you live in a temperate climate country, with the falling temperature - somehow its Nature's way of getting you to slow down a little as well.
"Enjoy life" if you know what I mean.
Besides consumers being acutely aware of the magic that Christmas brings - so do retailers.
Traditionally, it used to be the brick-and-mortar stores; all decked out in its full Christmas splendor.
Marketingly, its to help spread the joy. Afterall, "Tis the season to be jolly" no ?
But deep inside, we all know the strangle effects a beautifully decorated store has over us.
It makes us want to spend & be a part of that "joyful" equation, even if its for a fleeting moment no ?
With technology "quietly" and "insidiously" interwoven itself into our lives, we don't need even to make a physical trip to our favourite store, nowadays.
And we still could get what they want by letting the fingers do the walking.
On top of it, we still get the full package of Christmas decorations, including faux snowfall as well - all on the shopping websites of course !
Are retailers profitable ?
Are retailers profitable ? Here's the skinny :
While its about year end celebration, the subtext of every business is still the core question of "profitability".
Honestly, which businessman opens its door for business for charity and fun & laughter ?
At the end of the day, its about the dollars and cents no ?
How are US retailers faring ? (Sampling theory) :
- US favourite retailer - Saks Fifth Avenue reported a stronger than Q3 2022 earnings both for store & online. Black Friday as a major confidence booster that 2022 will end in with a "bang".
- US largest mall - Macy's $Macy's(M)$ earnings per share have beaten Wall St expectations for the past 2 years. No surprise that it would continue to do so.
- US #1 retailer - Walmart's Q3 2022 $Wal-Mart(WMT)$ total revenue was up +8.70% to $152.8 billion. Expecting to end the year on a "high".
On the whole, the retail scene looks "healthy" - don't you agree ?
I am sure the recently concluded Black Friday (25 Nov 2022) would've added to respective retailer's bottomline and a bit more....
What else is a "surprising find" from Quarterly earnings results is that revenue comes in almost equal between both "Brick & mortar" and "Online" business.
Who would have thought that "Online" commerce would play such a pivotal role in modern day retail landscape ?
The full customers' shopping experience especially in "luxury" shopping used to be the "resistance tagline" for the House of Chanel; not to get involved in eCommerce.
However they succumb to social-norm and pressure in the end and I am certain with "no regrets" for the sales figures have spoken and completely "vindicated" going online.
It literally means business is opened 24 x 7 - Luxury never sleeps - no ?
Brick & Mortar vs Online
Given the option to shop
- in person
- online
Without hesitation, it would have to be option #1 for me anytime.
Why ?
- For once, I don't shop frequently. When I do, I like the full experience.
- When its clothes I like to feel the fabric and observe how the overall construct fall when worn. Something that cannot be experienced in front of the laptop.
- When it comes to leather wares (bags or shoes), there is no replacing trying on and feeling its fit and overall suitability. If the "it" bag is it for you ?
So, hands down its "brick and mortar" for me anytime.... LOL
Online retailer - MyTheresa (MYTE)
If there is absolute need to include a retail stock in one's portfolio, I might not be making a beeline for the Big Boys. Instead, I would root for the underdog.
The Online eCommerce stock that I would be looking at will be MyTheresa (Ticker : MYTE).
Briefly :
- Its a luxury e-commerce platform for fashion consumers
- Presence in Germany, US, Europe and Internationally
- Offers the "best" in European designers' labels.
- Steep discount during the few "Sales" events; mostly up to 50% off retail price.
- During non-sales, retail price is cheaper than similar designer boutique in Singapore, can imagine during sales period.
- Offers no-questions asked return if the purchase is not to liking or has "defects".
- Sales purchase factored in "VAT tax" to facilitate parcel processing when it reaches Singapore
- Secure packaging with double sealed boxes. What more could one ask for ?
- Full courier tracking from the time item is packed and ready for shipping.
What else is compelling about MYTE ?
MyTheresa (Ticker : MYTE)
- Quarter on quarter earnings are decent
- With covid still around, travel is still a fraction of its former glory
- As such, there is still a lot of penned up demand for luxury merchandises
- With that lies the potentials.
So there you have it. My take on US retail.
Do you feel the same ? Are you a brick & mortar like me OR do you let your finger do the shopping ? Share in the Comments section below ok. Thanks.
Please "Like" this post ok. Thanks in-advance. The rating is important to me.
Matching song ? Shopping from A to Z by Toni Basil. Dunno ? YouTube it.
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