Companies are already gearing up for Black Friday.
Large companies are adding new employees to combat the Black Friday rush.
We are officially in fall which means we’re getting closer to the holiday season. And as you know, the holiday season is a big season for retail. But this year, for obvious reasons, the holiday shopping world is looking a bit different.
Instead of prepping for the hoards of people rushing for the best deals and loading their stores up with door-busters on Black Friday, the retailers have instead shifted their focus to hiring staff in anticipation of a flood of online and curbside pickup orders.
And while the overall hiring forecast for the holiday season “remains uncertain” – there’s a handful of companies that have already ramped up their hiring process to prepare for the rush. Here’s what we’re currently seeing…
Where’s the money?
Walmart has already hired more than 500,000 workers in stores and across its supply chain since March as the store has faced growing demand due to the pandemic. And recently, the company announced that it is looking to hire more than 20,000 seasonal workers in the e-commerce fulfillment centers across the country. But they’re not the only ones hiring.
FedEx announced it will hire 70,000 workers which happens to be a 27% increase from last year. UPS is aiming to hire 100,000 seasonal works. 1-800-Flowers is bringing on 10,000 new employees – a 25% jump. And Michaels, the large arts and crafts store, will be adding 16,000 season jobs, an increase of 6%.
Now, this hiring flurry is just beginning but that’s the good news. Because you can get ahead of the crowds and set yourself up for some nice profits. And here’s how you can do just that…
How can I get some?
As you can see, there’s a good amount of well-known companies bringing on large amounts of seasonal workers. But only one has my attention – and it’s a name that that has been on my watchlist for a while now.
Now, as we’ve talked about before, Walmart, unlike 90% of retail brick and mortar, has continued to do everything right in terms of the pandemic. In fact, they’ve seen an influx of business since Covid hit. And they’ve taken steps to expand along the way- including Walmart+ which they hope will rival Amazon Prime. On top of this, they’ve ramped up hiring and focused on expanding their ecommerce business, shifting away from their traditional brick and mortar fulfillment. And their current growth is unparalleled. That’s why I’m looking to get in on Walmart the second I see a pullback – and I think you should too.
In the spotlight: What Nike taught us…
On Tuesday, Nike revealed that they beat analysts’ revenue expectations by $1 billion. And the impressive earnings report didn’t stop there. The company reported earnings per share beating analysts’ expectations of $0.47. As far as revenue, the massive retailer brought in $10.6 billion, which while down 1% year-over-year destroyed Wall Street’s expectations of $9.14 billion.
Now, this performance shocked investors, as like many other retail stores, Nike faced long-term store closures due to the pandemic. The impact of the closures showed earlier in the year when Nike reported earnings, posting a net loss and a 38% decline in revenue.
But Nike has seen unbelievable growth over the last few months. And that’s because the company has shifted its focus from selling through third-party retailers to direct-to-consumer sales channels and e-commerce business, which helped make buying online easier for consumers. And even when Nike reopened its store fronts – it’s online sales still grew.
And while I’m not one for the retail sector right now – I think we can learn an important lesson from this knockout earnings report. Strong e-commerce presence is the future. So, I would be focusing on businesses who are making that their number one priority.
The Blueprint for Success
Nike and Walmart are just two of the many companies that have adjusted their business strategies in order to thrive in this new world we live in.
It’s these moves, combined with hiring announcements and positive earnings reports that tripped several of the indicators I use for my S.C.A.N. trading algorithm.
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