Heaviest Week in U.S. Online Holiday Shopping History Pushes Season-to-Date Total to $32 Billion, Up 15 Percent vs. Year Ago

For the holiday season-to-date, nearly $32 billion has been spent online, marking a 15-percent increase versus the corresponding days last year. The most recent week (week ending Dec. 18), led by four individual days surpassing $1 billion in sales, reached an all-time record of $6.3 billion in online retail spending, up 14 percent from the corresponding week last year. The final shopping weekend before Christmas reached $1.04 billion to rank as the second heaviest weekend of online spending on record.

IBM’s data unit Coremetrics has released its real time online retail benchmark study which shows online sales jumped 24.3% this Black Friday. This follows the growth of 39.3% increase in online sales on Thanksgiving day. Mobile traffic increased to 14.3 percent on Black Friday 2011 compared to 5.6 percent in 2010. The sales on mobile devices surged to 9.8 percent from 3.2 percent year over year.

Record Online Thanksgiving Day Shopping Paves Way for Strong Black Friday Retail Sales, Reports IBM

U.S. shoppers took advantage of early sales this holiday driving a 39.3 percent increase in online Thanksgiving day spending while setting the stage for 24.3 percent online growth on Black Friday compared to the same period last year, according to cloud-based analytics findings by IBM.

As part of IBM's Smarter Commerce initiative, IBM's online retail benchmark study reveals the following trends as of 12:00 am PST:

• Consumer Spending Increases: Strong Thanksgiving shopping carried over into Black Friday with online sales increasing 24.3 percent annually.
• The Mobile Bargain Hunter: Black Friday witnessed the arrival of the mobile deal seeker who embraced their devices as a research tool for in-store and online bargains. Mobile traffic increased to 14.3 percent on Black Friday 2011 compared to 5.6 percent in 2010.
• Mobile Sales: Sales on mobile devices surged to 9.8 percent from 3.2 percent year over year.
• The Apple Shopper: Mobile shopping was led by Apple, with the iPhone and iPad ranking one and two for consumers shopping on mobile devices (5.4 percent and 4.8 percent respectively). Android came in third at 4.1 percent. Collectively iPhone and iPad accounted for 10.2 percent of all online retail traffic on Black Friday.
• The iPad Factor: Shoppers using the iPad led to more retail purchases more often per visit than other mobile devices with conversion rates reaching 4.6 percent compared to 2.8 percent for overall mobile devices.
• Surgical Shopping Goes Mobile: Mobile shoppers demonstrated a laser focus that surpassed that of other online shoppers with a 41.3 percent bounce rate on mobile devices versus online shopping rates of 33.1 percent.
• The Social Influence: Shoppers referred from Social Networks generated 0.53 percent of all online sales on Black Friday. Facebook led the pack, accounting for 75 percent of all traffic from social networks.
• Social Media Chatter: Boosted by a 110 percent increase in discussion volume compared to 2010, top discussion topics on social media sites immediately before Friday showed a focus on the part of consumers to share tips on how to avoid the rush. Topics included out-of-stock concerns, waiting times and parking, and a spike in positive sentiment around Cyber-Monday sales.

"This year marked Thanksgiving's emergence as the first big spending day of the 2011 holiday season with a record number of consumers shifting their focus from turkey to tablets and the search for the best deals," said John Squire, Chief Strategy Officer, IBM Smarter Commerce. "This momentum continued into Black Friday where the big winners were those retailers that delivered a smarter commerce experience with compelling, relevant deals that people could easily access from their channel of choice."

Online Retail Categories

• Department stores once again offered a vast array of compelling deals and promotions that caught the attention of consumers. As a result, department stores sales were up 59.0 percent from this time last year.
• Home goods also reported a 48.8 percent increase in sales from Black Friday 2010, an indication that many consumers are shifting their attention toward the home this holiday season.
• Apparel sales were also strong this holiday with Black Friday numbers showing an increase of 47.2 percent over 2010.
• Health and Beauty sales were strong as consumers showed a desire to pamper themselves this year. On Black Friday, online sales were up 34.2 percent year over year.

Today's news is based on finding from the IBM Coremetrics fourth annual Black Friday Benchmark which tracks more than a million transactions a day, analyzing terabytes of raw data from 500 retailers nationwide. With this data IBM helps retailers better understand and respond to their customers – across the organization – improving sourcing, inventory management, marketing, sales, and services programs.

Get the detailed report here.

Won’t you like this retailers? But are you ready?

U.S. Online Holiday Spending Will Grow 15 Percent To Nearly $60 Billion

After Q3 2011 brought a 13 percent increase in e-commerce sales, Forrester is estimating that U.S. online holiday sales will grow 15 percent this year to nearly $60 billion. The study reports that this increase will take place because of the increase in consumer-use of tablet computers for shopping combined with a growth in online holiday deals.

The report shows that 58 percent of Americans say they are more price-conscious today than they were a year ago and nearly half believe they find better values online. And 50 percent of Americans who own a tablet use the device to research products for purchase with 30 percent of smartphone owners using their mobile device to research products for purchase at least monthly (which is a 30 percent increase in just the past year). And more and more online retailers will be offering better shopping experiences on mobile and tablet devices t take advantage of these trends.

TNS has launched the world’s largest study of digital behavior Digital Life based on responses from 72,000 consumers in 60 countries. The study’s size, scale and detail makes it the most comprehensive view of how consumers behave online and why they do what they do.

Key findings:

• Many brands are wasting time and money trying to reach people online even though many resent big brands invading their social networks
• 57% of people in developed markets don’t want to engage with brands online
• Misguided digital strategies are generating mountains of costly ‘digital waste’, from friendless Facebook accounts to blogs no one reads, because companies are acting without understanding consumer attitudes

You can explore the data and generate your own data visualizations at www.tnsdigitallife.com.

Wal-Mart has opened two shops in California malls which will test the concept of showcasing online merchandize. When shoppers visit these stores, they can Shoppers sit down with a laptop and shop a vast array of products on the chain's website.

Walmart.com test stores hint at Web shopping fight

Two tiny Walmart.com stores are making Southern California malls their home for the holidays, launching the latest salvo in the war for online retail dominance.

The temporary stores are a first for Wal-Mart Stores Inc, which experiments with store concepts in various markets hoping they will drive shoppers to its website.

The world's biggest retailer already operates stores within miles of the temporary Walmart.com locations, where shoppers can purchase items from the shelves or sit down with a laptop and shop a vast array of products on the chain's website.

Change in E-Commerce Strategy for Wal-Mart??

Wal-Mart Loses Two Top Executives

Two top executives announced today that they are leaving Walmart (WMT).

Eduardo Castro-Wright, the CEO of Global E-Commerce and Global Sourcing and the former CEO of Walmart Mexico, said he is retiring on July 1, 2012. Wan Ling Martello, EVP of Global E-Commerce for Emerging Markets, he will also be leaving on April 1, 2012.

Retailers Fear Becoming Amazon’s ‘Showroom’

A growing number of consumers had taken to going to Best Buy to test consumer electronics and then going online to get them at a cheaper price. As Greg Melich of ISI Group and others have pointed out before and since then, Best Buy appears to be in danger of turning into Amazon’s “showroom.”

By 2015, it's predicted that mobile purchases will total $119 billion globally.

Mobile E-Commerce Infographic

Learn More about 2D Barcodes at Microsoft Tag.

Retailers see a lucrative future in apps for tablet devices that resemble magazines.

NYTimes - Retailers Offer Apps With a Catalog Feel

Retailers like Net-a-Porter think they have found a way to give online shopping more of the feel of an outing at the mall or an hour with a catalog — by creating apps that resemble magazines for tablet computers. Just as magazine publishers are producing iPad apps that mimic print in a way they never could on ordinary Web sites, retailers are making iPad catalogs, with big, stylized photographs that users can flip through on the couch or in bed. And also like magazine publishers, they are adding rich features like video, sound and 3-D views.

TechCrunch today covered Beetailer whose software allows online retailers to import their web store onto Facebook while providing tools for promoting the store and detailed analytics about how well it is doing. Beetailer claims that it has over a thousand stores, reaching millions of fans are already using their system.

Beetailer Helps Online Retailers Set Up Shop On Facebook

Beetailer’s software connects with existing e-commerce platform, such as Magento and Shopify, and will import and sync online catalogs including, prices, images, sizes, colors and even whether products are in stock. The online storefront will populate on the retailer’s Facebook page and will essentially allow Facebook users to browse and add products to a shopping cart within the social network. When a user clicks to checkout and actually purchase the products, Beetailer will lead the user to the e-retailer’s website so the shopper will checkout via the retailer’s preferred payment process.

But in addition to accessing the social network’s vast userbase, retailers can also leverage Facebook’s social graph to engage consumers. Beetailer allows retailers to launch time-limited, Facebook-specific promotions, including prizes and discounts for fans who like, comment, and bring other friends to the store.

Additionally, Beetailer provides retailers with analytics to measure the results of each
promotion. Beetailer’s data will include traffic, demographic data, most visited products, most visited categories, number of checkout and more.

Wal-Mart, Target, Sears et al are lobbying legislators to change sales-tax laws in more than a dozen states including Texas and California that will force Internet Retailers to collect Sales Taxes from companies like Amazon. 

Retailers Push Amazon on Taxes

The big-box stores are backing a coalition called the Alliance for Main Street Fairness, which is leading efforts to change sales-tax laws in more than a dozen states including Texas and California.

Until now, the group has been largely associated with mom-and-pop stores, spotlighting stories of small toy shops and booksellers who argue Internet merchants that aren't legally required to collect sales taxes enjoy an unfair advantage with shoppers.

Amazon has feverishly fought efforts to compel it to collect sales taxes. The Seattle-based online retailer says it complies with the law. Under a 1992 U.S. Supreme Court ruling, only merchants who have a physical presence, such as stores, in a state have to collect sales taxes. Amazon currently gathers those taxes in just five states: Kansas, Kentucky, North Dakota, its home base of Washington, and New York.

But retailers pushed for passage of a new law in Illinois last week that forces Amazon to collect sales taxes if it employs marketing affiliates in the state—a measure similar to a New York law that retailers want to replicate nationally—and their drumbeat may soon spur federal action.

Thanks to some cold weather which makes for some favorable conditions for online shopping (Blizzard in Northeast), holiday season retail online spending is seeing a 13% increase over last year. From comScore release:

comScore a leader in measuring the digital world, today reported holiday season retail e-commerce spending for the first 56 days of the November – December 2010 holiday season. For the holiday season-to-date, $30.81 billion has been spent online, marking a 13-percent increase versus the corresponding days last year. The most recent week (week ending Dec. 26) witnessed $2.45 billion in spending, an increase of 17 percent versus the corresponding week last year.

There’s a 12% increase in retail e-commerce spending in the first first 47 days of the November – December 2010 holiday season compared with the same period a year ago.

comScore is reporting that for the holiday season-to-date, $27.46 billion has been spent online, marking a 12-percent increase versus the corresponding days last year. The most recent week (week ending Dec. 17) reached $5.15 billion in spending, an increase of 14 percent versus the corresponding week last year, with four individual days surpassing $900 million, led by Green Monday (Monday, December 13) with $954 million and Free Shipping Day (Friday, December 17) with $942 million. A lot of shopper took advantage of the Free Shipping Day which achieved a 61-percent increase versus the corresponding shopping day last year, highlighting the appeal and success of the promotion in which more than 1,500 merchants offered free shipping.

That means Cyber Monday emerged as the season’s heaviest online spending day for the first time in history.

"Free Shipping Day punctuated an exceptional week in which consumers spent more than $5.5 billion online, representing a 14-percent increase from last year," said comScore chairman Gian Fulgoni. "While no individual days during the week surpassed $1 billion in spending, we saw strength throughout the week beginning with Green Monday and ending with Free Shipping Day on Friday. At this late juncture in the online holiday season, we have likely already witnessed the peak spending day of the year, which means that Cyber Monday should emerge as the season's heaviest online spending day for the first time in history."

Sears Holdings today announced the launch of AdYourWay, a revolutionary new shopping tool that gets to know customers and personalizes the shopping offers that they receive. By combining the powerful marketplace product selection with personalized content and customized recommendations, AdYourWay helps customers manage their lives to save both time and money.

"We're living in a customer-controlled retail environment and it is imperative that we continue to reinvent the company through technology and innovation to improve our relevance with our customers," said David Friedman, SVP and president, Marketing, Sears Holdings. "AdYourWay is a unique shopping tool that puts control back into the hands of our customers, allowing them to manage and organize both the products and the offers that interest them."

From a single personalized page on Sears.com, and soon to come to Kmart.com, AdYourWay allows customers to receive personalized product recommendations based on previous purchases and product searches. Once a customer is logged into Sears.com or Kmart.com, AdYourWay technology works to provide customers with deals and offers on products of interest and those that are relevant to their lifestyle.

More here <http://www.prnewswire.com/news-releases/sears-holdings-launches-adyourway-new-personalized-online-shopping-solution-106297818.html>

Looks basic to me, something effective testing should have caught. Result, you lose 4-5 million customers, some forever.

Sears' Web Goof: 5 Million Customers Blocked

When Sears upgraded its E-Commerce site's infrastructure in late August, it inadvertently blocked all visitors who don't accept cookies, a move that the $44 billion chain is now attempting to fix.
Although both industry and Sears sources estimate that only 1.2 to 3 percent of U.S. shoppers block cookies these days, it could still prevent almost 5 million U.S. shoppers from giving any of their e-dollars to Sears. And it's another reminder of the unintended consequences of Web and mobile site infrastructure changes.

Disturbing news but nonetheless sort of expected.

In what might be the latest sign of trouble for brick-and-mortar bookstores, the mega-chain Barnes & Noble announced on Tuesday that its board was putting the company up for sale.

…

For years, Barnes & Noble has been battered by large shifts in the publishing industry and the retail environment. Book sales have moved toward big-box stores like Costco, Wal-Mart and Target, and away from mall-based stores like B. Dalton, which Barnes & Noble acquired in the late 1980s.

“There’s been a long series of pressures,” said David Schick, managing director at Stifel Nicolaus in Baltimore. “The market has not been kind to bookstores, and it’s for new reasons like competition with Apple and Amazon, and it’s for old reasons, like what we believe has been a decline in reading for the last 20 years. Americans have devoted less of what we call media time to books.”

FreshDirect (an online grocer) CEO, Richard S. Braddock’s interview in NYTimes.com.

The lesson? “It really costs a lot of money to give bad service,” Mr. Braddock said.

There are reports over the weekend that Procter & Gamble is opening a store of its own. While P&G termed it as a “Learning Lab” and not a direct competition to Wal-Marts of the country, if anyone is buying Tide over internet, they will likely buy it from the brand website.

P&G to Peddle Products Online

Procter & Gamble announced it will launch an online store with e-commerce services leader PFSweb, but said it is not trying to bypass the big-box retailers like Wal-Mart and Target that peddle its household and personal care brands to Internet shoppers.

"While the eStore is another online store for consumers to buy Procter &Gamble brands, [it] is first and foremost a learning lab for ecommerce innovations,' P&G spokeswoman Tressie Long told Forbes. "P&G is not a retailer, nor is the eStore an indication that we want to be," she added, noting that it is not an attempt to bypass other online merchants. "We have already been talking with our retail partners regarding the eStore and making sure they understand our goal is to develop and qualify e-commerce innovations that will mutually increase online sales for P&G and our e-retail partners."

The site will be operated and managed by PFSWeb and exclusively feature P&G products to consumers in the U.S only.

JC Penney seems to have hit run with a very viral marketing campaign titled, Beware of the Doghouse. The campaign allows women to put their their significant other in the "Doghouse" for bad gift choices this holiday season. This new site and the marketing campaign behind it provide a fun, interactive way for women to encourage the men they love to get out of the “Doghouse,” by purchasing affordable diamond gifts from The Jewelry Store inside JCPenney. Not just that the campaign makes use of Facebook Connect application, which allows Facebook users to easily log into their account and select potential “Doghouse” candidates from their Facebook Friends list. The application also allows photo downloads from the profile pages and feeds stories from the site to the candidate’s Facebook Wall. The website and video has spread like wildfire over the web this past few weeks.

This is a great example of how Retailers are using Social Media and innovative marketing to connect with customers and generate sales.

Read more:

Retailers find Facebook friends in hopes of finding sales

Why JCPenney's 'The Doghouse' Went Viral

Retailers are adopting new strategies in targeting its loyal customers (WSJ, Registration reqd) by using Analytics and advertising promotions on an individual basis. This is a shift from earlier times when Retailers would send similar email promotion to all. Retailers like Sears, Gap, Target are using analytics to tap their most profitable customers and shying away from TV commercials

It's an adage of the business: Persuading a satisfied customer to return is cheaper than attracting a new one. Now, in the struggle to do more with less, that concept is becoming even more important.

Acquiring a new customer costs about five to seven times as much as maintaining a profitable relationship with an existing customer, says Marc Fleishhacker, managing director at WPP's Ogilvy Consulting, which designed the campaign for Sears.

…

Sears and Ogilvy have developed a system to identify the categories of merchandise Sears customers have purchased in the past and to measure the chance that they will buy those sorts of items again this season. That helps Sears determine the type of emails and point-of-sale offers to aim at individual customers.

When customers buy an item online, Sears confirms the purchase with an email including a promotion tied to that product. A person who buys a new appliance at Sears.com might get an email offering a deal on the store's extended-warranty program.