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Dec. 2, 2019, 3:46 p.m. EST

Target, Best Buy and Lululemon were Thanksgiving weekend retail winners, analysts say

Cyber Monday is on track to hit a record $9.4 billion in sales while foot traffic at stores reached 160 million over the weekend

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By Tonya Garcia, MarketWatch


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Shoppers traveled to stores and went online in big numbers over the Thanksgiving weekend.

Target Corp., Best Buy Co. Inc. and Lululemon Athletica Inc. are among the winners from the record-breaking holiday shopping weekend, analysts say.

About 160 million people went to stores over Thanksgiving weekend, spending an average of $504, up 50% from last year, according to data from the International Council of Shopping Centers.

Online shoppers spent $4.2 billion on Thanksgiving, the first time the final tally exceeded $4 billion. Black Friday reached a record $7.4 billion in online sales, and broke the average order value record, hitting $168. And Small Business Saturday drove big business, reaching a new record $3.6 billion in online sales.

For the month of November, online sales totaled $68.2 billion, with 11 days surpassing $2 billion in online sales.

Read: With six fewer holiday season shipping days there’s no time for impulse purchases, which is bad for retail

The retailers scoring big during the holiday season are those with strong multiplatform capabilities, which makes shopping convenient. Since Nov. 1, buy-online-pickup-in-store has grown 43.2% year-over-year. And more than a third of online sales (36.1%) has been done on smartphones, according to Adobe Analytics /zigman2/quotes/200389143/composite ADBE +3.25%  .

“Online shopping received some unexpected boosts this holiday season,” said Taylor Schreiner, head of Adobe Digital Insights, in a statement. “Consumers are reimagining what it means to shop during the holidays, with smartphones having a breakout season as well. We expect that consumers will spend $14 billion more this holiday season via their phones.”

Nearly a third (30%) of 1,000 respondents to a Blue Fountain Media survey said they would do all of their shopping online, though just 12% plan to use voice assistants like Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN +0.62%   Alexa, and even fewer, 10%, plan to use virtual shopping tools, like a try-on feature.

Blue Fountain Media is a digital marketing agency owned by Pactera Company.

See: 10 best Cyber Monday deals, according to deal pros

Raymond James was “impressed” by the traffic at Target /zigman2/quotes/207799045/composite TGT -0.28%   and Best Buy /zigman2/quotes/205918291/composite BBY +0.82%   stores, where gaming merchandise and televisions were hot items.

Despite the online outage at Costco Wholesale Corp. /zigman2/quotes/201191698/composite COST +0.98%   on Thursday, the warehouse retailer bounced back, with analysts saying they “do not believe it materially impacted Costco’s performance over the holiday” since only 4% to 5% of the company’s sales are online.

And Walmart Inc.’s /zigman2/quotes/207374728/composite WMT -0.35%   pickup capabilities as well as its delivery options, which includes in-home delivery in three cities, “position it well to take share over the holiday season,” Raymond James wrote.

Cowen analysts say Lululemon Athletica Inc. /zigman2/quotes/204011506/composite LULU -0.36%  , Vans, the VF Corp. /zigman2/quotes/206706147/composite VFC -3.16%   brand and off-price retailers like TJX Cos. /zigman2/quotes/203136811/composite TJX -0.24%   and Burlington Stores Inc. /zigman2/quotes/203203718/composite BURL -2.75%  , had a good showing in stores.

“As noted, Vans and Lululemon used little in-store or online promotions to drive robust traffic,” analysts said.

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