Retail ETFs: Are September Numbers Foreshadowing the Holidays?

The September retail sales figures are in, and it’s better than expected. But can these results be turned around into a holiday “win” for retail ETFs?

Why analysts predicted a 1% decline, sales actually rose 0.6%. Discounts and bargains have helped lure the shy-to-spend consumer, reports Rachel Dodes for The Wall Street Journal.

Ultimately, September sales numbers monitored stores open for at least one year, and this report is a key measure of retailer’s health and consumer spending. Will the positive numbers translate into a merry holiday season for retailers? Yes and no.

Retailers are predicting that they’ll see a 1% drop in sales over the holidays. But this is also an improvement over last year’s dismal showing, when sales dropped 3.4%, the Associated Press reports. Consumer confidence is higher than it was a year ago, and shoppers may be more willing to spend.

• SPDR S&P Retail (NYSEArca: XRT): up 71.1% year-to-date

• Consumer Discretionary Select Sector SPDR (NYSEArca: XLY) up 28.5% year-to-date

• Claymore/Robb Report Global Luxury (NYSEArca: ROB) up 42.6% year-to-date

Comments

[newbietech:]

Thus far the evidence is that people will scrape savings during the year to buy their kids and significant others some gifts during Holidays.
It happened last year and expect the same to happen this year.
So if the expected bounce does not arrive then something is definitely wrong.

Oct 09 10:39 AM