A Record-Setting Week for Online Holiday Sales

Online sales for the first full week of what is considered the true holiday shopping season grew 15 percent to a record $5.96 billion, according to comScore, a firm that measures digital data.

The week from November 28 (“Cyber Monday”) to December 2 had three individual days that saw more than $1 billion in online spending, led by Cyber Monday, which was the heaviest online spending day on record at $1.25 billion. November 29 reached $1.12 billion and November 30 reached $1.03 billion. These three billion dollar spending days currently rank as three of the four heaviest online spending days in history.

For the holiday season-to-date (November 1 – December 2 as measured by the Reston, Va.-based company), $18.7 billion has been spent online, a 15-percent increase versus the corresponding days last year.

“As the deals from this week expire, it will be important to see the degree to which consumers return to the same retailers to continue their holiday shopping, thereby helping improve retailers’ profit margins, or if we experience a pullback in consumer spending—which has occurred in previous years—before promotional offers and spending intensity pick back up in earnest around mid-December,” said comScore chairman Gian Fulgoni.

One of the most prevalent holiday season promotions used by online retailers is free shipping, which typically peaks around the Cyber Monday period. More than half of all transactions have included free shipping with rates increasing later into the season, comScore said. The week of Thanksgiving (week ending Nov. 27) saw free shipping occur on 64.4 percent of transactions, while this past week maintained a similar level at 63.2 percent. In each case, these rates were approximately 10 percentage points higher than last year.

“Free shipping is one of the most important incentives that online retailers must provide during the holiday season to ensure that shoppers will convert into buyers,” Fulgoni said.

More than one-third of respondents (36 percent) indicated that free shipping was “very important” and that they would not make a purchase without it, according to comScore’s annual holiday shopping survey. An additional 42 percent said that free shipping was “somewhat important” and that they actively seek out free shipping deals. Only 15 percent of respondents indicated that free shipping was not particularly influential in their purchase decision.

Cyber Monday is a marketing term created in 2005 by online retailers after learning that online shopping activity increased the Monday following Black Friday.

Growth and October Retail Sales and September Jewelry Sales

Retail sales in October increased 0.7 percent from September and 4.7 percent year-over-year led by discretionary purchases and growth in all categories, according to the National Retail Federation.

Meanwhile, October retail sales released by the U.S. Commerce Department show that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 0.5 percent seasonally adjusted month-to-month and 6.7 percent unadjusted year-over-year.

“Retailers’ early holiday promotions seemed to strike the right chord with shoppers last month,” said Matthew Shay, NRF president and CEO. “Knowing the economy is still a big factor in customers’ shopping decisions, retailers will continue to offer great deals and exceptional value throughout the holiday season.”

Earlier this month, NRF forecast holiday sales to rise 2.8 percent this year to $466 billion. NRF defines holiday sales as retail industry sales in the months of November and December.

U.S. jewelry store sales for the month of September rose 22 percent year-over-year to $2.12 billion, according to government figures quoted by Rapaport. The consumer price index for jewelry rose 8 percent in September. In its advanced retail summary report for the month of October, also reported by Rapaport, the government said U.S. department store sales fell 0.7 percent to $14.4 billion. Retail trade sales rose 7.3 percent year on year in October. Retail and food sales, excluding automotive related revenue, rose 6.8 percent to $344 billion during the month of October.

Meanwhile, NRF October data for specific retail categories includes the following:

• Electronics and appliance stores’ monthly sales grew the most in two years, increasing 3.7 percent seasonally adjusted over the previous month and 3.5 percent unadjusted year-over-year.

• Unseasonal winter-like weather helped boost traffic at building material and garden equipment stores, whose sales grew 1.5 percent seasonally adjusted month-to-month and a solid 6.3 percent unadjusted year-over-year.

• Sporting goods, hobby, book and music stores’ sales increased 1.3 percent over September and 7 percent unadjusted from the previous year.

• Health and personal care stores sales increased 0.7 percent seasonally adjusted over September and 4.3 percent unadjusted year-over-year.

• Sales at clothing and clothing accessories stores decreased 0.7 percent seasonally adjusted over the previous month, but increased 4.2 percent unadjusted year-over-year.

September Retail Sales Show Strong Growth

Retail sales increased 0.4 percent from August and a better-than-expected 5.7 percent over last September, as shoppers continued to show strength during a weak economic recovery, according to the National Retail Federation.

Meanwhile, September retail sales released by the U.S. Commerce Department show that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 1.1 percent month-to-month and 8.6 percent over last year, partially due to strong auto sales.

“The American consumer and the retail industry continue to lead this recovery, and strong September retail sales are just what the economy needs right now,” said NRF President and CEO Matthew Shay. “The unexpectedly strong sales increase in September may work to dampen fears of a double-dip recession and could indicate an economic and employment rebound.”

Much of September’s strength came as a result of retail sales increases due to Hurricane Irene and an influx of shoppers who chose to complete back-to-school shopping later this year. Building materials stores rose 6.4 percent over last year, sporting goods stores were up 7.2 percent and clothing store sales increased 8.3 percent.  August retail sales were revised upward to 0.4 from July, which was originally reported as 0.1%.

Earlier this month, NRF forecast holiday sales to rise 2.8 percent this year to $466 billion. NRF defines holiday sales as retail industry sales in the months of November and December.

Retail Sales Continue to Show Improvement

Improvements in the U.S. economy bolstered retailer’s February sales, reflecting improved consumer sentiment as it relates to spending, according to the National Retail Federation.

Retail industry sales (which exclude automobiles, gas stations, and restaurants) for February 0.6 percent seasonally adjusted from January and 4.2 percent unadjusted year-over-year, NRF said.

“Retailers have done a commendable job keeping their inventory levels where they need to be, while still offering attractive promotions for those who are eager to spend,” said Matthew Shay NRF president and CEO. “The big challenge retailers will face in the coming months, however, will be going head to head with high cotton, food and energy prices.”

“February retail sales are in sync with evidence of the expanding economy,” added Jack Kleinhenz NRF chief economist. “While February is typically a slow month for retailers, consumers showed their spending power, though it’s too soon to tell what type of impact the spike in gasoline prices will have on consumers this spring.”

February retail sales released today by the U.S. Department of Commerce show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 1 percent seasonally adjusted over January and 9.1 percent unadjusted year-over-year.  

Clothing and clothing accessory stores sales increased 0.8 percent seasonally adjusted month-to-month and improved 4.4 percent unadjusted year-over-year. Department stores showed strength with a gain of 1 percent over January but saw a decline of 1.4 percent unadjusted year-over-year.

Sales at building material, garden equipment and supplies dealers, a sector hit hard by the collapsed housing market, rose 0.6 percent seasonally adjusted from January and 9.6 percent unadjusted over last year. Sporting goods, hobby, book and music stores sales increased 1.3 percent seasonally adjusted month-to-month and 5.2 percent unadjusted year-over-year.

Sales at health and personal care stores slowed from the previous month, decreasing 0.3 percent adjusted from January, but grew 5.2 percent unadjusted year-over-year. The opposite is true for electronics and appliance stores whose sales increased 0.9 percent seasonally adjusted from the previous month but decreased 1.7 percent unadjusted over last year.

NRF: Valentine’s Day Jewelry Sales Expected to Reach $3.5 Billion

Tiffany's Elsa Peretti open heart pendant in 18k rose gold.

Consumers are expected to shell out $3.5 billion on jewelry this Valentine’s Day, up from an estimated $3 billion last year, according to a National Retail Federation survey.

More than 17 percent of consumers said they are planning on buying their loved ones something sparkly, up from 15.5 percent last year, according to the NRF’s 2011 Valentine’s Day Consumer Intentions and Actions Survey, conducted by BIGresearch. About 9.5 percent of shoppers will be buying their gift from a jewelry store.

This is the second survey this week that predicts more shoppers will be buying jewelry for their loved ones on this romantic holiday. The IBISWorld survey said that jewelry sales will experience a year-over-year increase of 11.3 percent.

Overall, according to the survey, the average person will shell out $116.21 on traditional Valentine’s Day merchandise this year, up 11 percent over last year’s $103. Total holiday spending is expected to reach $15.7 billion.

“Having surpassed expectations during the holiday season, it seems consumers are not done spending on gifts, which bodes well for the economy,” said Matthew Shay, NRF president and CEO. “Jewelry, candy and apparel sales should provide a nice boost for retailers during the typically slower months of January and February.”

Having cut back on spending in recent years, couples this year will spend an average of $68.98 on their significant other or spouse, up from $63.34 last year. Even family pets will be feeling more of the love this year. The average person will spend $5.04 on their furry friends, up from $3.27 last year. Consumers will also spend an average of $6.30 on friends, $4.97 on classmates and teachers, and $3.41 on co-workers.

Greeting cards will be the most popular gift (52.1 percent), according to the survey. However, spending across the board is expected to be up this year. Clothing ($1.6 billion vs. $1.5 billion in 2010) and dining out ($3.4 billion vs. $3.3 billion in 2010) will also be popular gift options. In addition, celebrants will spend $1.7 billion on flowers, $1.5 billion on candy and $1.1 billion on greeting cards.

As usual, men will spend the most on Valentine’s Day gifts. The average man plans to shell out more than twice as much ($158.71) as the average woman ($75.79).

“Though the economy will still be on their minds, Valentine’s Day holds a special place in many Americans hearts,” said Phil Rist, BIGresearch executive VP, strategic initiatives.

Discount stores (36.6%) will be the most popular shopping destination, but department stores (30.5%), specialty stores (19.4%) and online (18.1%) will share much of the holiday traffic as well. Others will check out their local florist (16.8%) and jewelry store (9.5%).

With co-workers, children and children’s classmates/teachers to buy for, young couples/parents will spend far more than their parents or grandparents on Valentine’s Day. Adults 25-34 will spend an average of $189.97, compared to the $60.22 adults 65+ will spend.

NRF Forecasts 4% Increase in Retail Sales for 2011

Retail industry sales (which exclude automobiles, gas stations, and restaurants) will increase 4 percent from 2010, according to the National Retail Federation 2011 economic forecast. The retail trade association said the “cautiously optimistic outlook” comes on the heels of seven consecutive months of retail sales growth and better than expected holiday sales.

Consumer spending ended on a strong note in 2010 thanks to robust holiday spending figures, the prospects for economic growth are starting to look better, NRF said. However, small businesses hiring freezes and higher energy costs for consumers could curtail the speed and strength of the retail spending momentum.

“With retailers leading the charge, the economic recovery appears to be gaining some steam,” said Matthew Shay, NRF president and CEO. “The fate of the Main Street resurgence ultimately rests with policymakers on Capitol Hill. As Congress begins tackling key issues like deficit reduction and tax reform, it is critical we support policies that encourage job creation, consumption and business investment.”

According to NRF’s latest Retail Sales Outlook report, while consumers are once again showing a willingness to spend, inflation from rising commodity prices and continued high unemployment could become obstacles to economic growth.

2012 Sales Off To A Good Start

Photo credit: Olivia Bucks/The Oregonian

Gift cards, redemptions and warm weather led to solid and widespread growth for January retail sales, according to two reports.

January retail industry sales (excluding automobiles, gas stations and restaurants) increased 0.9 percent seasonally adjusted from December and 4 percent unadjusted year-over-year, according to the National Retail Federation.

“Thanks to a combination of unseasonably warm weather across much of the country and millions of shoppers with gift cards burning holes in their pockets, retailers are still riding the tailwinds of consumers’ spending power,” said Matthew Shay, NRF President and CEO. “As a traditionally slower sales month for the industry, it’s encouraging to see such sustained growth in consumer spending and sentiment.”

Meanwhile, January retail sales data, released by the U.S. Department of Commerce, showed total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 5.6 percent unadjusted year-over-year and 0.4 percent seasonally adjusted month-to-month.

Among the highlights of NRF data are:

• Sales in sporting goods, hobby, book and music stores increased 1.1 percent seasonally month-to-month and 3.5 percent unadjusted year-over-year.

• General merchandise stores’ sales increased 2 percent seasonally-adjusted over December and 4.7 percent unadjusted year-over-year. 

• Sales at building material, garden equipment and supplies dealers increased 0.2 percent seasonally adjusted from the previous month and a strong 10.5 percent unadjusted year-over-year.

• Sales at furniture and home furnishing stores decreased 0.2 seasonally adjusted from December and increased 7.9 percent unadjusted year-over-year.

• Electronics and appliance stores’ sales increased 0.5 percent seasonally adjusted month-to-month and decreased 1.1 percent unadjusted year-over-year, and sales at clothing and clothing accessory stores’ sales were flat over the previous month and increased 3.4 percent unadjusted over last year.

Jewelry to Lead the Way for Valentine’s Day

Jewelry is expected to be the most popular gift giving item for Valentine's Day. Montblanc Valentine’s Bead Bracelet.

Consumers are expected to spend $4.1 billion on jewelry, up from $3.5 billion last year, to lead the way for spending this Valentine’s Day, according to a recently released survey. In addition, nearly 19 percent of survey participants said they will buy jewelry this year, up from 17.3 percent last year, the highest percent in the survey’s history.

Total spending for Valentine’s Day is expected to reach $17.6 billion with the average person shelling out $126.03, up 8.5 percent over last year’s $116.21, according to NRF’s 2012 Valentine’s Day Consumer Intentions and Actions survey, conducted by BIGinsight. The highest average spend in the survey’s 10-year history.

Follow this link to view a variety of jewelry gift ideas.

“As one of the biggest gift-giving holidays of the year, it’s encouraging that consumers are still exhibiting the desire to spend on discretionary gift items, a strong indication our economy continues to move in the right direction,” said Matthew Shay, NRF president and CEO. “Anticipating high foot traffic in the coming weeks, retailers have replenished their inventories and will entice eager shoppers with great deals on everything from special menu items at restaurants to clothing to flowers and, of course, chocolates.”

Consumers will shell out the most on their partners, with the average person planning to spend $74.12 on their spouse or significant other, up from $68.98 last year, according to the survey. In addition, they will spend an average of $25.25 on their children, parents or other family members and $6.92 on friends. Pet owners will spend about $4.52 on their pets.

The survey also found the average male is expected to spend $168.74 on clothing, jewelry, greeting cards and more this year—nearly twice as much as women who are expected to spend an average of $85.76.

More than 13 percent will buy gift cards, up from 12.6 percent last year. Half of all celebrants will buy candy, 36 percent will buy flowers and 35.6 percent will treat their loved one to an evening out.

Consumers will spend more than $3.5 billion on a special evening out, the second highest total, according to the survey. They will also spend $1.8 billion on flowers, $1.5 billion on candy, $1.4 billion on clothing and $1.1 billion on gift cards.

Discount stores are expected to see the most traffic (37 percent), followed by department stores (33.6 percent). Others will shop at specialty stores (20.2 percent), online (19.3 percent), floral shop (17.8 percent), jewelry stores (10.6 percent) and specialty clothing stores (6.6 percent).

More than half of tablet owners (53.8 percent) will use their device to research products, compare prices, redeem coupons, look up retailer information or purchase products, according to the survey. More than 40 percent of smartphone owners will use their mobile device to do the same.