From The Expert: Investing - Black Friday Wish List

Black Friday Shopping
By Rachel Winter   Senior Investment Manager at  Killik   & Co

By Rachel Winter

Senior Investment Manager at Killik & Co

On the eve of the retail phenomenon that is Black Friday, I’m taking a look at how our changing shopping habits are reflected in the stock market…

This week I’ve been busy putting together my Black Friday wish list, and it’s made me think about how much my shopping habits have changed in a relatively short space of time. Doing my Christmas shopping once involved lugging armloads of bags along Oxford Street, but now it entails browsing on my iPad while lounging in my pyjamas. The retail landscape has transformed, and 17% of UK retail expenditure now takes place online. With this in mind, I thought I’d pick a few companies that have been impacted by the shift to online, and highlight how they might be seen through the eyes of an investor.

I’m sure every man and his dog (yes, even the dog) knows that Amazon has been a major winner from the online shift, with the e-commerce giant now claiming one in every three dollars spent online in the US. Other more obvious beneficiaries are online-only clothing businesses such as Asos and Boohoo, both of whom have more than tripled their sales in the last five years. But what other sorts of companies have benefitted? More online shopping means less use of cash, so card companies such as Visa and online payment companies such as PayPal have done well. Then there are businesses operating behind the scenes. Take Deutsche Post (owner of courier DHL), which has been delivering the extra parcels we’ve been ordering, and Clipper Logistics, which processes returns for major retailers. Over 25% of UK online orders are returned, so Clipper has certainly been busy!

As with any big economic change there have been losers as well as winners, which does go to show that investing is not without risks. Major department stores such as Macy’s have lost out as footfall on the high street has declined, and supermarkets such as Tesco and Sainsbury’s have suffered after spending money building massive stores that shoppers are now rejecting in favour of online deliveries.

I’m duty-bound to say that past performance is no guarantee of future performance when it comes to stocks and shares, but I hope this article has shown just how related the stock market can be to your everyday life. Investing doesn’t just mean buying a load of boring old banking stocks – there are loads of great brands on the stock exchange that cover a multitude of industries. If you invest in companies that you understand and can relate to, I think you’ll be much more likely to take an active interest in the investments that could fuel your savings.



Disclaimer: This article is meant to be commentary only. It’s not intended to be taken as investment advice, so please don’t assume I’m telling you that investing in one of these companies would be suitable for you. If you are thinking about getting into investing that’s great, but you should always take advice from a professional advisor before deciding.

As with a lot of things in life, investing is not without risks. Investments can go up, but they can also go down, so you might lose some of your money or in the worst case you might not get back any of the money you put in. Just because a company or investment has done well in the past does not mean that it will do well in the future.

*Please note that this is NOT a sponsored post*

Photo by on Unsplash.

Written by Rachel WinterSenior investment manager at killik & co

I have a degree in Economics and have completed the Chartered Wealth Manager qualification, and now I’m enjoying applying the theory to everyday life. We’re all making decisions every day about what we like or dislike and what to buy or not to buy, and at Killik we look at these trends and try to relate them to companies on the stock market. For example, when we picked up on a noticeable increase in the number of Londoners wearing their trainers to work we started looking at shares in the big sportswear brands. We have also looked at shares in cosmetics companies because of the spike in makeup sales that has taken place since people started taking more selfies.

I’m really keen to make investment more engaging, and I try to get to know my clients and speak to them about companies they will find interesting. I also act as a spokesperson for Killik & Co and write regularly for financial publications such as the Investors Chronicle and MoneyWeek, as well as presenting a weekly YouTube video which aims to explain what is happening with the stock market.