Retail exchange traded funds could see clear skies ahead as shoppers will enjoy relatively good weather over the final shopping weekend of the holiday season.
Year-to-date, the SPDR S&P Retail ETF (NYSEArca: XRT) rose 4.3%, Market Vectors Retail ETF (NYSEArca: RTH) increased 12.9% and PowerShares Dynamic Retail Portfolio (NYSEArca: PMR) gained 7.5%. [Sector ETFs Capitalizing on Cheap Oil]
Good weather conditions will allow retailers to bring in last-minute shoppers before Christmas next week. According to Scott Bernhardt, president of global business weather intelligence firm Planalytics, most major population centers across the U.S. will not be covered with winter storms during peak shopping hours, notably on Super Saturday, reports Krystina Gustafson for CNBC.
Retail observers have been monitoring weather forecasts for the final weekend before Christmas as it is expected to be one of the busiest periods of the holiday shopping season. For instance, ShopperTrak analytics calculates that this Super Saturday will be the biggest sales day of the year for the first time in a decade.
The weekend before Christmas has historically been one of the busiest periods of the year for brick-and-mortar stores since it is typically too late for online shipping orders to meet the Christmas deadline by then.
Additionally, industry experts anticipate a heavy shopping season the day after Christmas since the holiday falls on a Thursday and many offices may be closed Friday and into the weekend. However, Bernhardt warns that a storm could threaten the Great Lakes region on Christmas Eve and then move east.