Decoding Retail Trends: Alt-Data Revolution on Wall Street

As the holiday season approaches, Wall Street turns to 'alternative data' to predict winners and losers in retail. Companies like Goldman Sachs are purchasing insights from data firms such as HundredX to gain competitive advantage. This shift marks a move away from traditional data reliance, leveraging consumer sentiment, credit card swipes, and geolocation data.

As the holiday season draws near, Wall Street is innovating how it gauges the financial landscape, turning to 'alternative data' sources to predict retail success stories. Goldman Sachs and others are seeking insights from firms like HundredX, marking a departure from traditional reliance on classic earnings reports.

This alternative data taps into consumer sentiment and transactional behavior, offering investors a cutting edge. HundredX, founded by ex-Goldman partner Robert Pace, collaborates with non-profits to assess shopper intentions. The data gathered is leveraged in Goldman's equity research and investment banking strategies, though the bank remains tight-lipped on specifics.

Despite some retail executives expressing concern over data ubiquity, many still acknowledge its critical role in understanding market dynamics. Firms like Lombard Odier are utilizing this data-driven strategy to anticipate market shifts and guide investment, merging multiple data sources to predict consumer behavior with impressive accuracy.

(With inputs from agencies.)