I just read an initial report out of ComScore indicating this year’s Friday retail e-commerce numbers were up slightly over last year. Online, nontravel e-tailer sales grew 1% for the day to $534MM from $531MM last year. For the month of November, retail e-commerce sales were down 4% from last year’s numbers. The National Retail Federation, on the other hand, is forecasting an increase of 2.2% for the full Thanksgiving weekend (with only Sunday being an estimate), on total spend of $41 billion and average customer spend up 7% from $372.57 to $347.55.
All in all, I’d consider the data to be encouraging (relatively speaking). It seems to me all retailers were very concerned about spend and pushed heavy discounts to the forefront to ensure the holiday season got off to a good start. It may not bode well for retailer margins, or for the overall health of the industry for that matter, but at least a strategy of heavy discounting did create elasticity and spend with consumers. It would have been far worse to heavily discount and feel like one was simply pushing on a rope. People could have easily refused to put any money out this holiday season, and frankly I would have guessed we would see declines in spend. I’m still not sure I believe the increase in average purchase size.
Walking around, things seemed to be pretty busy. I put a couple of pictures from Macy’s and the Apple Store in NYC this weekend below. They were jammed.
The next step is to see whether people have “forward bought” and all retailers have done is rob from tomorrow to get paid today. I noticed several retailers offering discounts for future period purchases. For example, at Banana Republic, upon completing a purchase, they offered a card for 20% off any item between December 2 and 22nd. The goal is clearly to get me back into the shop. It will be interesting to hear the data come in over the next month. If anyone has other good anecdotal data, would certainly love to hear it!Read Full Post | Make a Comment ( None so far )