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U.S. retail stocks slide on Black Friday as new virus worries arise -Breaking

by Mike Robinson

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© Reuters.

By Medha Singh

(Reuters] – U.S. department stores’ shares fell on Friday after the identification of a coronavirus variant that may be resistant to vaccines exacerbated problems caused by low store visits and thin stock for holiday season.

Black Friday has been transformed by retailers into an event lasting a month. This is despite supply chain problems and labor shortages. Customers prefer to shop online after the pandemic.

Macy’s Inc. (NYSE 🙂 fell 6%. Kohl’s Corp. Nordstrom Inc Each stock dropped by 3.5%

As the COVID-19 new variant was introduced, the 0.8% slump prompted tightening of borders in Britain, the European Union and other countries and investors fled to more secure assets.

The variant was discovered in South Africa, Botswana, and Hong Kong. Scientists say that it is capable of bypassing immune reactions and may even be transmissible.

Russ Mould (investment director at AJ Bell) stated, “A panic surrounding the new COVID variation is terrible news retailers hoping customers would go into stores to grab Black Friday deals.”

U.S. retail clothing retailer Guess (NYSE:) Inc. American Eagle Outfitters (NYSE:) Inc, Abercrombie & Fitch Co, Nike Inc (NYSE :), Gap Inc(NYSE 🙂 Lululemon Athletica (NASDAQ:) Inc fell between 2% to 6.6%

Rob Garf is vice president and general manger of retail for Salesforce (NYSE): “People are getting back in physical stores earlier in the holiday shopping season and making more purchases,” said Garf.

The S&P retailing index slipped 0.2%, coming off an all-time high hit just last week.

Sam Stovall from CFRA Research New York, Chief Investment Strategist, stated, “I wouldn’t be surprised that, at least for now, and while we get more info about this variant, the virus would cause some retail stocks to be sold,”

Amazon.com (NASDAQ) grew by 0.6%.

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