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Online sales decline for the first time on Black Friday and Cyber ​​Monday

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Online sales during the 2021 Black Friday and Cyber ​​Monday shopping holidays were slightly lower than the previous year, the first time such a decline has been recorded. According to Adobe Analytics, Americans invested $ 8.9 billion in Black Friday transactions and $ 10.7 billion in Cyber ​​Monday specials, compared to $ 9 billion and $ 10.8 billion in 2020.

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Image Source: US Global Investors

Benefit from energy efficient cryptocurrency mining

Private consumption accounts for about 70% of the US economy, so some may interpret these results as a sign of future concern. It doesn’t look like this for several reasons. In fact, the decline in sales could be yet another example of “bad news is good news.”

By the way, not all retailers have seen e-commerce revenues decline since last year. Amazon(AMZN) Reported Record shopping season Between Black Friday and Cyber ​​Monday, household items, toys and apparel are the best-selling categories.

Consumption looks strong on all accounts

The most likely explanation for why Americans didn’t set new sales records last weekend is that they have expanded their discretionary spending throughout the year. Unlike in the last few years, people didn’t seem to be waiting for a Black Friday deal to buy a new TV, update their kitchen appliances, or get a luxury item. In addition, many retailers introduced discounts much faster than usual.

This is all confirmed by Adobe data for November.During that month the Americans spent $ 109.8 billion Online, it’s a 12% increase compared to November 2020. Adobe added that the 22nd of the month exceeded $ 3 billion. This is a new milestone.

Please see below. US consumption increased by $ 214.3 billion (1.3%) from September to October, and personal consumption increased for the eighth straight month.

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Image Source: US Global Investors

Sea shipping industry net profit soars to unprecedented levels

Pandemics have contributed significantly to increased consumption.Low rates, easy money and Rising wagesConsumers are generally shifting much of their discretionary spending from experiences (eating out, movies, concerts) to commodities. For example, in the first half of 2021, sales of the giant luxury conglomerate LVMH reached a record high of € 28.7 billion ($ 34 billion). The global luxury goods market is also expected to reach a record € 283 billion ($ 325 billion) by the end of the year, up slightly from total sales in the first half of 2019, according to Bain & Company.

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Image Source: US Global Investors

Unprecedented shipping charges clearly show that demand this year was much higher than average. According to Freightos, the average global price to ship a single 40-foot container was $ 9,351 at the end of November, almost four times last year.

Similarly, ports around the world continue to be congested.Hamburger Port in Germany has recently arrived Recorded 2.1 million TEU rail container volume (Unit equivalent to 20 feet) The first 9 months of 2021. The port also reported that it had the highest total container volume in the third quarter, transporting approximately 709,000 TEU by rail.

Watch a video on why we are bullish on world freight and transportation..

Frank Holmes is CEO and Chief Investment Officer of. US Global Investor ((((growing up).

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Equity News Contributor: Frank Holmes

sauce: Equity news

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