It’s the most important time of year for retailers. Black Friday brought out the diehard American doorcrashers; but more than ever, this is an arms race that’s playing out online: Adobe Analytics predicts online sales throughout the holiday season will climb 14 per cent to US$107.4 billion. Today we’ll assess which retailers are best-positioned to capture those digital dollars, and hone in on the landscape on this side of the border – where Sears’ liquidation threatens to disrupt the season.
Some notable holiday shopping forecasts from the U.S. National Retail Federation:
-24.3 per cent of consumers plan to spend more than last year
-54.2 per cent of consumer plan to spend the same
-Of those planning to buy gift cards, 36 per cent say they plan to purchase restaurant cards
Some retail bellwethers’ YTD performance:
-Amazon: +54.2 per cent
-Wal-Mart: +39.5 per cent
-Best Buy: +32.4 per cent
-HBC: -14.8 per cent
-Macy’s: -42.4 per cent
SOBEYS SLASHING JOBS
Sobeys confirmed to BNN it is indeed cutting 800 jobs, or approximately 20 per cent of the chain’s office staff. The cuts were earlier reported by The Globe and Mail. This shouldn’t come as a surprise. CEO Michael Medline’s so-called Project Sunrise aims for $500 million in annual cost cuts by 2020. Parent company Empire has also said it’s planning for $200 million in one-off costs, including severance payments. Worth noting how shareholders have been rewarded for Medline’s work since he took over: Empire shares have surged 57 per cent so far this year.
AURORA FORMALLY LAUNCHES CANNIMED TAKEOVER OFFER
Aurora Cannabis has formally launched its unsolicited takeover offer for CanniMed Therapeutics. A notable condition: Aurora says it will not go ahead with the deal with CanniMed closes its planned takeover of Newstrike Resources.
KEYSTONE RIPPLE EFFECT
WTI oil futures are into another day of gains – nearly hitting US$59 per barrel in early trading – as the Keystone leak continues rippling across the market. TransCanada says it has 170 working on the clean up, with 44,000 gallons of oil recovered as of yesterday.
OTHER NOTABLE STORIES:
-The TSX came within 30 points of its all-time high yesterday. Number to watch is 16,131.79
NOTABLE RELEASES/EVENTS
-11:30 a.m. ET: Justin Trudeau holds media avail in Happy Valley-Goose Bay, Newfoundland and Labrador
-2:30 p.m. ET: Rachel Notley delivers speech to Calgary Chamber
-Deadline for provinces to file submissions to National Energy Board re. Trans Mountain constitutional questions
Reminder: U.S. markets close at 1:00 p.m. ET today for the holiday weekend
Every morning BNN's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnn.ca/subscribe.
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