The countdown to Christmas is underway. But initial data shows two major retailers are leading the pack.
1. Walmart & Costco are generating higher seasonal buzz growth
While we would expect improved performance from each retailer into the holiday season, Walmart and Costco are making more meaningful strides vs. last quarter.
Last quarter, Walmart beat market expectations and raised guidance, but shares traded lower due to lower profit margins resulting from the retailer's desire to keep prices low and competitive for consumers.
Costco fared better in the eyes of investors following its most recent report, with shares trading +6% higher.
But this chart does give insight to one of the top questions on investor minds...we know consumers began shopping earlier in 2021, anticipating "supply chain" and delivery challenges.
According to LikeFolio data, buzz for these retailers is building on top of the prior quarter, but some companies are harnessing more consumer attention than others.
2. Walmart & Costco are making the most significant Happiness improvements
To be fair, Walmart's overall level of consumer happiness is the lowest vs. all peers near 54% positive...but this is a 9 point improvement vs. last year.
Costco and Target are both recording significant Happiness improvements. Happiness tends to be very forward-looking, so this is a strong indicator of consumer retention. We'll be monitoring these metrics over the next few weeks as last minute shoppers pull the trigger. But so far, it seems consumer demand continues to show strength across the retail segment.