Technology exchange traded funds may get a boost from digital sales, but this year technology may also be doing the shopping. Smartbook, Facebook, and Apple apps may turn out to be a shopper’s best friend.
“It’s no longer “Black Friday, it’s going to be Black Thanksgiving from here on out,” Marshal Cohen, chief industry analyst at the NPD Group said on LA Times. “Retailers recognize the importance of being convenient, and one of those conveniences is opening earlier so people don’t have to wait in line at 4 in the morning in the cold.”
Another convenience that retailers are banking on is online shopping. Retailers are overhauling their traditional holiday promotion strategies with digital tools that engage shoppers. According to National Retail Federation Data, consumers are using their phones, computers and tablets to retail shop, and studies fund they spend 22% more than in-store shoppers.[Relative Strength: Technology ETFs Lead Market Higher]
Technologies also make in-store shopping more fun, as retailers will push their discounts into your phone as soon as you walk in. Amazon’s Flow app will let consumers photograph an item, then the app locates it online, and the consumer can compare prices, read reviews, and of course, make a purchase.
“There is so much less true loyalty to any brand in today’s economic environment, Christopher Barcelona, executive creative director for retail at Resource Interactive, said. “You want to make it easy and seamless for customers to buy your product or service no matter when that moment strikes.” [ETF Spotlight: Retail Sector and the Holiday Shopping Season]
Retail experts are upbeat about retail sales this holiday season, with sales predicted to be about $466 billion, a 2.8% increase over 2010, according to Associated Press. Christmas and holiday sales account for anywhere between 40-60% of retailers total sales for the year.
SPDR Technology Select Sector Fund (NYSEArca: XLK) holds major technology companies such as Apple (NYSE: AAPL) and Google (NasdaqGM: GOOG).
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.