Highlights
Strong Jewelry Sales in Store and Online at Beginning of Holiday Shopping Season
December 1, 2010

Approximately 212 million shoppers visited stores and websites over Black Friday weekend, up from 195 million last year, according to the National Retail Federation. People also spent more, with the average shopper this weekend spending $365.34, up from last year’s $343.31. Total spending reached an estimated $45 billion. This includes the number of people who purchased jewelry over the weekend, which rose substantially, from 11.7 percent last year to 14.3 percent this year. More people also purchased gift cards, toys and books and electronic entertainment than a year ago.

 

Meanwhile, spending on Cyber Monday (November 29), the e-commerce equivalent of Black Friday, reached $1.028 billion, up 16 percent year-over-year, representing the heaviest online spending day in history and the first to surpass the billion-dollar threshold, according to comScore, a Reston, Va.-based firm that measures digital data. For the November – December 2010 holiday season to date (November 1-29), $13.55 billion has been spent online, a 13-percent increase versus the corresponding days for the prior year. The figures do not include spending on travel.

 

Jewelry and luxury goods performed exceptionally online, according to Coremetrics, an IBM owned digital research company based in San Mateo, Calif. Compared with strong in-store sales for Black Friday, jewelry sales were up 50 percent in sales. In a year-over-year comparison with Cyber Monday 2009, luxury goods sales are up 24.3 percent.

 

“While Black Friday weekend is not always an indicator of holiday season performance, retailers should be encouraged that a focus on value and discretionary gifts has shoppers in the spirit to spend,” Matthew Shay, NRF president and CEO, said speaking about brick and mortar sales. “As retailers look ahead to the first few weeks of December, it will be important for them to keep momentum going with savings and incentives that holiday shoppers simply can’t pass up.”

 

According to the NRF survey conducted over the Black Friday weekend by BIGresearch, the number of people who began their Black Friday shopping at midnight tripled this year from 3.3 percent last year to 9.5 percent in 2010. By 4 a.m., 24 percent of Black Friday shoppers were already at the stores. Thanksgiving Day openings have also been a boon to the industry, as the number of people who shop on Thanksgiving—online and in stores—has doubled over the past five years, from 10.3 million in 2005 to 22.3 million in 2010.

 

“It’s certainly encouraging to see an increase in traffic and sales from the four-day holiday weekend, however, consumers still have concerns about the economy, jobs, and paying down debt,” said Phil Rist, BIGresearch executive vice president. “It was the consumers’ search for deals and bargains that drove the weekend traffic rather than their confidence in the economy.”

 

While shoppers seemed focused on getting good deals, items of strong value seemed to win out over the absolute lowest prices, according to the survey. Both department stores (52% this year vs. 49.4% last year) and clothing stores (24.4% vs. 22.9%) saw healthy increases in traffic, while the percentage of people who shopped at discounters declined from 43.2 percent last year to 40.3 percent this year.

 

The NRF survey also noted that the percentage of people who shopped online this weekend rose 5.1 percent, from 28.5 percent last year to 33.6 percent this year prior to Cyber Monday.

 

Gian Fulgoni, comScore chairman, said that the conditions are in place online for consumers to register additional single-day sales of a billion dollars.

 

“The online holiday shopping season has clearly gotten off to a very strong start, which is welcome news,” Fulgoni said regarding the Cyber Monday e-commerce survey. “At the same time, it’s important to note that some of the early strength in consumer spending is almost certainly the result of retailers’ heavier-than-normal promotional and discounting activity at this early point in the season. So, while we anticipate that there will be more billion-dollar spending days ahead as we get deeper into the season, only time will tell if overall consumer online spending remains at the elevated levels we’ve seen thus far.”

 

Cyber Monday’s growth in sales was driven primarily by an increase in average spending per buyer (up 12 percent) while the number of buyers on Cyber Monday grew by a lower 4 percent to 9 million, comScore said. The average spending per transaction grew 10 percent to $60.05, while the total number of transactions increased 6 percent to 17.1 million.

 

Nearly half of dollars spent online at U.S. websites originated from work computers (48.9 percent), representing a decline of 3.8 percentage points from last year. Buying from home comprised the majority of the remaining share (45.4 percent) while buying at U.S. Web sites from international locations accounted for 5.8 percent of sales.

 

“While online shopping from work originally occurred to take advantage of broadband speeds that people lacked at home, it was widely believed that this would decline markedly as home broadband connectivity increased,” Fulgoni said. The fact that spending from work remains so prevalent suggests other explanations. It is more likely that consumers continue to shop from work primarily because by doing so they are able to shop for holiday gifts while minimizing the risk that their children, spouses and significant others might see what Santa will bring .”

 

Cyber Monday is a marketing term created by Shop.org, an association of digital retailers, to encourage consumers to shop online. It is held on the first Monday following Black Friday.

 

Coremetrics figures were in line with comScore, noting that year-over-year online sales were up 19.4 percent on Cyber Monday, with consumers pushing the average order value from $180.03 to $194.89 for an increase of 8.3 percent. The company also noted that social media and mobile shopping are gaining momentum among shoppers. Online shopping peaked at about noon (9 a.m. PST), but was stronger throughout the day when compared with 2009.

 

 

 

 

 

 

 

 

 

 

 

Cyber Monday 2010 Compared to Black Friday 2010

 

    * Consumer Spending Increases: Online sales were up 31.1 percent, with consumers pushing the average order value (AOV) up from $190.80 to $194.89 for an increase of 2.1 percent.

    * Luxury Goods Continue Comeback: Jewelry retailers reported a significant jump of 60.3 percent in sales.

    * Social Shopping: The growing trend of consumers using their networks on social sites for information about deals and inventory levels continued on Cyber Monday. While the percentage of visitors arriving from social network sites is fairly small relative to all online visitors—nearly 1 percent—it is gaining momentum, with Facebook dominating the space.

    * Mobile Shopping: Consumers continue to use mobile as a shopping tool. On Cyber Monday, 3.9 percent of people visited a retailer’s site using a mobile device.

 

Cyber Monday 2010 Compared to Cyber Monday 2009 (year/year):

 

    * Consumer Spending Increases: Online sales were up 19.4 percent, with consumers pushing the average order value (AOV) up from $180.03 to $194.89 for an increase of 8.3 percent.

    * Luxury Goods Report Big Gains: Affluent shoppers opened their wallets wide, driving sales of luxury goods up 24.3 percent over 2009.    * Shopping Peaks at 9:00 am PST/Noon EST: Consumers flocked online, with shopping momentum hitting its peak at 9:00 am PST/noon EST. But consumer shopping maintained stronger momentum throughout the day than on Cyber Monday 2009.

 

The survey, conducted Nov. 25-27, polled 4,306 consumers and has a margin of error of plus or minus 1.5 percent.

 

 

—a strong sign heading into Cyber Monday, a marketing term created by Shop.org, a subsidiary of NRF, for the Monday immediately following Black Friday for online shoppers.


http://www.coremetrics.com/solutions/benchmark-report-black-friday-cyber-monday-2010.php?cm_sp=holiday-benchmark-reports-_-website-_-homepage-tile
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