With Christmas looming, it’s not too difficult to be a good cheer if you’re an online retail exchange-traded fund (ETF), especially since the latest number crunching suggests 2018 will be the biggest year for online retail sales.
Adobe Analytics is reporting that online holiday retail shopping is fast approaching the $125 billion mark, and as of December 19, U.S. consumers have already spent $111 billion shopping behind a computer screen and an internet connection. This already trumps last year’s number within the same time period by $17 billion.
ETF investors looking to capitalize on this record-breaking year can look to funds like the Amplify Online Retail ETF (NasdaqGM: IBUY) and SPDR S&P Retail ETF (NYSEArca: XRT). According to the latest performance numbers via Yahoo Finance, IBUY is up 10.40 percent year-to-date, while XRT has risen 3.55 percent YTD.
Early indications of a strong holiday shopping season were already evident on Black Friday as online sales reached a record total of $6.22 billion–once again, the numbers courtesy of Adobe Analytics. That was followed up with Cyber Monday where sales reached a record $7.9 billion, which represented a 19.3 percent increase from a year ago.
More Shoppers Using Mobile Devices
The sales increase obviously speaks to the shift of consumer spending habits from brick-and-mortar retail to the convenience of online shopping. Adobe Analytics also reported that half of the $6.22 billion in sales came from mobile devices like smartphones.
Furthermore, shoppers were more inclined to use their mobile devices to locate deals and make purchases.
“For merchants, this portfolio of connected devices represents an unprecedented opportunity to capture and convert consumers into customers wherever they are, and whenever they happen to be in the mood to make a purchase,” said Karen Webster of PYMNTS.com. “In fact, Adobe reported that 49 percent of online traffic on Black Friday was generated by smartphones, and the devices were used to turn 30 percent of all online purchases into sales.”
“Weary holiday shoppers continue to look for alternatives to crowded stores, long lines and empty shelves in the final push to Christmas,” said Taylor Schreiner, director of digital insights at Adobe. “Retailers who can offer the easiest shopping experience, whether through excellent use of data to anticipate shoppers’ needs or by providing an option for picking up products at brick-and-mortar stores, are the ones people are flocking to this week.”
For more market trends, visit ETF Trends.