Going for Black Friday shopping? Consider these 2 retail stocks

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Going for Black Friday shopping? Consider these 2 retail stocks

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 Going for Black Friday shopping? Consider these 2 retail stocks
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Highlights 

  • Black Friday and Cyber Monday online scams rose by 61 per cent, to £15.4 million in 2020 compared to the previous year.
  • Action Fraud warned shoppers to be vigilant ahead of the Black Friday sale on 26 November.

The UK’s fraud and cybercrime reporting centre, Action Fraud, found online shopping scams during the Christmas period in 2020, rose by about 61 per cent to £15.4 million from 2019, according to a report by The Guardian.

The cyber-crime reporting centre received over 28,000 reports in the last year. And it was reported that shoppers lost over £2 million during the Black Friday and Cyber Monday sale offers in 2020, costing an average of over £500 per victim, according to media reports.

Action Fraud ahead of Black Friday, which is later this week, on 26 November has therefore cautioned shoppers to stay vigilant while shopping online. Moreover, the police have recommended certain measures that online shoppers can undertake such as buying from official retail sites (as fraudsters often use fake sites to defraud victims) and to follow Action Fraud’s Take 5 to Stop Fraud campaign.

Let us take a closer look at 2 FTSE listed stocks in the retail sector with Black Friday sale offers and their investment prospects:

  1. John Lewis of Hungerford PLC (LON: JLH)

AIM-listed company John Lewis is a British company that designs, manufactures, installs and sells kitchens, bedrooms and more.

The company, along with other retailers including Curry and Asda is planning additional Black Friday offers this year, despite facing ongoing supply chain related shortages.

The group’s trading operations director, Jon Williams, anticipates sales to return to pre-pandemic levels last seen in 2019, adding that sales were rising by 40 per cent on a week-on-week basis ahead of the Christmas period.

Mr. Williams stated the group plans to have about 17 per cent more offers compared to 2020. The company also plans to hold a special crisis meeting to handle stock and delivery-related issues.

 JLH share price and volume

(Image source: Refinitiv)

John Lewis’ shares ended flat at GBX 1.43 on 19 November. Meanwhile, the FTSE AIM All-Share index closed at 1,232.14, down by 0.37 per cent.

The company has a market cap of £2.76 million and its one-year return is at 159.09 per cent as of 19 November.

  1. Currys PLC (LON: CURY)

Currys is a UK based multinational electrical and telecom retail company. The company is part of the FTSE 250 index and was previously known as Dixons Carphone.

The company launched its Black Friday related deals for its loyalty cardholding members earlier this month on 5 November. The company had slashed prices for big-ticket electronic items including Sony and Samsung TV sets.

This year the company is expected to launch similar deals across home entertainment, tech and other areas.

The company recently said in its latest trading update, that it expects to have a robust peak trading season, and stated it is on track to meet its FY 2021/22 profit before tax target of £161 million.

CURY share price and volume

(Image source: Refinitiv)

Currys’ shares ended at GBX 133.80, up by 0.07 per cent on 19 November. Meanwhile, the FTSE 250 index closed at 23,492.49, down by 0.35 per cent.

The company has a market cap of £1,560.72 million and its one-year return is at 19.36 per cent as of 19 November.

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