Retail exchange traded funds, including the Amplify Online Retail ETF (IBUY) and SPDR S&P Retail ETF (XRT), were pummeled during the recent broader market swoon, but holiday shopping data is shaping well for retail ETFs.
It is widely expected that online posted banner results this holiday seasons, but some traditional retailers held up well, too.
This constant year-over-year migration from brick-and-mortar to online was evident as visits to physical retail stores was down for a fifth straight year, according to a Wall Street Journal report. However, the drop in 2018 wasn’t a steep drop-off from 2017 as consumers still use physical stores to purchase items they know are in stock or want to view an item prior to purchasing it online for a better price. Nonetheless, as last minute shoppers flock to tick off the remaining gift recipients on their lists ahead of Christmas Day, the convenience of online retail still offers an attractive option.
“Sales in the U.S. from Nov. 1 through Christmas Eve were up 5.1 percent to more than $850 billion, according to Mastercard SpendingPulse, which monitors spending both in stores and online via all forms of payment. Mastercard also said online sales during that time frame were up 19.1 percent from a year ago, in line with earlier reports that showed robust growth in e-commerce this holiday season,” reports ETF Daily News.
Supportive Data
There are some encouraging signs for brick-and-mortar retailers, particularly among apparel and home improvement retailers.
“Some of the strongest sectors within retail this holiday season include apparel and home improvement, according to Mastercard. Apparel sales were up nearly 8 percent from Nov. 1 through Dec. 24, their best growth since 2010, the firm said. Home improvement spending, meanwhile, was up 9 percent,” according to ETF Daily News.