4 Canadian Retail Stocks That Could Ring Up Major U.S. "Black Friday" Gains
As U.S. Thanksgiving approaches next week (November 24), it always signifies one of the fiercest shopping days of the year: Black Friday (November 25). This year, expect cross-border shopping to pick up as the Canadian dollar has weakened with the price of oil. That being said, watch the Canadian retail stocks on our list in the coming weeks as they get ready for what could be a large influx of Americans getting the most out of their money by flocking over the border to shop.
A weaker dollar helps bring tourists/shoppers to Canada, which could boost the 4 Canadian retail stocks on our list below:
1. Indigo Books and Music Inc. (TSE:IDG) – $16.50
Miscellaneous Specialty Retailers
Indigo Books & Music Inc. is a Canada-based book, gift and toy retailer that operates stores in approximately 10 provinces and a territory in Canada, and offers online sales through its indigo.ca website. It operates approximately 90 superstores under the banners Chapters and Indigo, and approximately 120 small format stores under the banners Coles, Indigospirit, SmithBooks and The Book Company.
- Market Cap: $428.62(mm)
- Revenue (LTM, CAD, Millions): $1,013.61
- YTD PCT Change: 13.4%
2. Leon’s Furniture Ltd. (TSE:LNF) – $17.15
Home Furnishings Retailers
Leon’s Furniture Limited provides a network of home furniture, appliances and electronics, and mattress stores in Canada. The Company’s retail banners include Leon’s, The Brick, The Brick Mattress Store, The Brick Clearance Centre, United Furniture Warehouse (UFW), The Brick’s Midnorthern Appliance and Appliance Canada. It is a commercial retailer of appliances to builders, developers, hotels and property management companies.
- Market Cap: $1,231.38(mm)
- Revenue (LTM, CAD, Millions): $2,141.63
- YTD PCT Change: 21.8%
3. Reitmans Canada Ltd. (TSE:RET.A) – $6.60
Apparel & Accessories Retailers
Reitmans (Canada) Limited is a Canada-based company, which is engaged in the sale of ladies’ specialty apparel to consumers through its retail banners. The Company has stores located in malls and retail power centers across Canada. The Company operates under banners, including Reitmans, which is a women’s apparel specialty chain and fashion brand that operates over 330 stores; Penningtons, which offers products under plus-size fashion sizes 14 to 32 and operates over 130 stores; Addition Elle, which offers products for plus-size women and operates over 110 stores; RW & CO., which offers fashions for men and women with approximately 80 stores; Thyme Maternity, which is a brand for moms-to-be with over 70 stores, and offers a complete line of nursing fashions and accessories; Hyba, which offers activewear and yoga clothes for exercising or sports and operates approximately 20 stores, and Smart Set.
- Market Cap: $413.28(mm)
- Revenue (LTM, CAD, Millions): $940.36
- YTD PCT Change: 62.2%
4. Sleep Country Canada Holdings Inc. (TSE:ZZZ) – $26.91
Home Furnishings Retailers
Sleep Country Canada Holdings Inc. is a Canada-based mattress retailer that operates under two mattress retail banners: Dormez-vous?, the retailer of mattresses in Quebec, and Sleep Country Canada, the mattress retailer in the rest of Canada. The Company offer a range of mattresses and an assortment of complementary sleep related products and accessories, which include bed frames, pillows, mattress pads, sheets, duvets, headboards and footboards.
- Market Cap: $1,014.16(mm)
- Revenue (LTM, CAD, Millions): $507.46
- YTD PCT Change: 56.1%
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For the record, Canada does NOT have a Black Friday on Nov. 25th (although we do have a Boxing Day equivalent on Dec. 26th).
The article is try to convey (apparently not very well) that many Americans in the border states could well cross over into Canada on that day to purchase items given the fact that their USD is worth almost 40% MORE than that of the Canadian loonie and such purchases could help the sales revenue and profits of the companies mentioned.
Lol, thanks for the clarification Lorimer. I suppose it comes down to this - with the USD worth so much more than the loonie, would a consumer get a better deal buying an item from Canada that's not officially on sale, or a heavily slashed item right here in the US? Though I suppose it would be a great way to avoid the long checkout lines.
Interesting concept but as someone who lives near the border, I'd like to point out that ever since 9/11, it now takes way too long to cross into Canada. It used to be similar to driving through a toll booth. That wait would cancel out any long checkout lines here in the US. If you can get a Black Friday doorbuster deal, that would often be an item thats half-off or more, cancelling out any loonie savings.
As for excessive wait times in store? I haven't gone to a physical store on Black Friday in years. I do all my buying from the comfort of my couch as there are so many deals online these days. While the dollar may be strong in terms of purchasing power, customs costs and shipping fees still makes internet shopping from Canada expensive.
I'm confused, Canada has Black Friday also? Why? Isn't the US's Thanksgiving and the day after a regular work day over there?
After doing my own online research, I learned that Black Friday in Canada is indeed the day after US Thanksgiving not Canadian Thanksgiving. Would have been nice if the article had been clearer. Also could have used context on the Canadian retail market.