As Black Friday approaches, investors are eyeing the retail sector for potentially lucrative returns. The upcoming holiday shopping season in the U.S. is projected to exceed $1 trillion in retail sales, with consumers expected to spend between $1.01-$1.02 trillion in November and December 2025, marking a 3.7%-4.2% increase over last year.

Key retail stocks to consider include Amazon (AMZN) and Walmart (WMT), which have resilient business models to capitalize on the holiday season. Amazon’s diversified revenue streams and strong growth in subscription services make it a top contender. Walmart’s e-commerce expansion, especially in grocery, has been successful, generating over $100 billion in annual digital sales.

Crocs (CROX) is a top apparel stock to watch for a rebound, with a Zacks Rank #1 (Strong Buy). Despite an expected dip in EPS this year, Crocs is projected to rebound and rise in FY26. The company recently surpassed Q3 earnings expectations by 22%, indicating strong potential for growth.

In addition to Amazon and Walmart, other retail leaders like Costco (COST) and apparel stocks such as Lululemon (LULU) and Nike (NKE) are worth considering. The Consumer Discretionary Select Sector ETF (XLY) provides exposure to top retail stocks like Amazon, Nike, and Lululemon. These stocks and ETF offer opportunities for investors amid expectations of a record holiday shopping season.

Read more at Nasdaq: Stocks to Watch for the First Trillion Dollar Holiday Shopping Season