Thursday, December 04, 2008

Cyber Monday Sees a 15% Rise in Sales

Despite the gloom and doom around the holiday shopping season, what with the economy in turmoil, apparently all is not lost (yet). According to market research firm comScore, Cyber Monday saw $846 million in online spending, up 15% from 2007. The four-day period from Black Friday through Cyber Monday saw online spending jump 13% with both weekend days and Monday all achieving double-digit increases.

But, and these days there's always a but, so far the online holiday shopping season has raked in $12.03 billion. down 2% from 2007, based on the first 31 days of shopping from November 1st to December 1st. Excluding those 4 days, spending is down 4% from 2007.

comScore chairman Gian Fulgoni said:
"Mark Twain might have said: 'Rumors of the death of online holiday shopping have been greatly exaggerated. Consumers are clearly responding positively to retailers' aggressive online discounts. With Cyber Monday promotions beginning in earnest over the Thanksgiving weekend, consumers have finally begun to open their wallets, setting off a streak of four consecutive days of extremely strong growth, and culminating in a Cyber Monday that racked up an impressive $846 million in online spending, up 15 percent over last year and ranking it as the second heaviest online spending day on record. This is an extremely encouraging development for retailers and we can but hope that their aggressive discounting has still left room for profits."
That's the thing: profits. People may be shopping, but only because prices have been slashed and retailers may be making little if anything on these sales. Another problem for retailers: 5 less shopping days before Christmas this year.

Let's not forget: Monday was the day that the government finally admitted what everyone else seemed to know: we are officially in a recession.

Other data from the report, 51% said they found promotions and discounts to be higher this year (from last year). Only 12% said there appeared to be fewer deals. Meanwhile, 39% said they felt that there was less foot traffic in retail stores this year, while 7% thought it was heavier.

comScore is forecasting a flat online holiday sales season from last year.

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