News / Economy

    'Cyber Monday' Sales Set to Hit Record as Mobile Grows

    FILE - Packages that are ready to ship move along a conveyor belt at the Amazon.com 1.2 million-square-foot fulfillment center in Phoenix, Arizona,  Nov. 26, 2012.
    FILE - Packages that are ready to ship move along a conveyor belt at the Amazon.com 1.2 million-square-foot fulfillment center in Phoenix, Arizona, Nov. 26, 2012.
    Reuters
    U.S. online sales are expected to hit $2 billion on “Cyber Monday,” for the first time since the data firm comScore began tracking such information.
     
    Monday's 20 percent increase is expected to come even after many consumers shopped earlier because retailers began offering online discounts on Sunday to compete with each other and online retail giant Amazon.com Inc.
     
    As of 6 p.m. EST (2300 GMT), online sales were up 17.5 percent on “Cyber Monday,” according to IBM Digital Analytics Benchmark.
     
    “All of them are behind Amazon, but some are starting to catch up,” said Edward Jones analyst Brian Yarbrough, said of bricks-and-mortar retailer, but gave Macy's Inc and Wal-Mart Stores Inc good grades for their e-commerce operations.
     
    E-commerce now accounts for roughly 10 percent of retail spending in the United States. However, it is growing much faster than sales at bricks-and-mortar stores as shoppers seek low prices, convenience, faster shipping and wider selection. Cyber Monday is the busiest day of the year for online sales.
     
    U.S. shoppers spent almost three percent less overall than they did a year earlier during the Thanksgiving weekend, according to the National Retail Federation data. But online sales rose 17.3 percent on Thanksgiving and Black Friday, outpacing sales growth at brick-and-mortar stores, data from comScore Inc  showed.
     
    It is too soon to know which retailers are winning, but a fuller picture will emerge on Thursday when some stores report monthly same store sales.
     
    On Monday, the S&P Retail Index finished the day down 0.7 percent. Macy's Inc. shares fell 1.5 percent, while J.C. Penney Co. Inc. was down 1.8 percent and Target Corp. down 1.9 percent. EBay Inc. was up 1.6 percent, while Gap Inc. rose up 1.5 percent.
     
    Electronics were again the top seller on Cyber Monday.
     
    Walmart.com CEO Joel Anderson said the retailer has run out of Sony Corp PS4 and and Microsoft Corp's XBox consoles, as had Target Corp., but both chains expected fresh supplies.
     
    PriceGrabber, a price comparison website, said that as of Monday afternoon, Samsung's Galaxy Tab tablet was the most sought after item. Over the weekend, the most common searches were for Apple Inc.'s iPad and iPad Mini tablets.
     
    Growing Importance of Mobile
     
    A big source of online shopping growth this holiday season has come from increased use of smart phones, which enable consumers buy online with tablets or in-stores with their phones.
     
    According to IBM, mobile sales accounted for 15.6 percent of online sales as of Monday at 6 p.m. (2300 GMT) compared to 13 percent on Cyber Monday in 2012.
     
    “Consumers really seem to like the ease of shopping on the go. They have been browsing with their smartphones and buying with their tablet devices,” said Jay Henderson, Strategy Director for IBM.
     
    Walmart.com's Anderson said mobile shopping accounted for 55 percent of its traffic. Blue Nile Inc. Chief Executive Harvey Kanter told Reuters that 60 percent of visits to its web site and 25 percent of sales were made on a mobile device during the weekend.
     
    But many retailers' websites are better suited to laptops than to phones or tablets, noted Forrester Research analyst Sucharita Mulpuru. “There's still work to do.”
     
    United Parcel Service Inc. expected to ship 32 million packages on Monday, one million more than last year, said Alan Gershenhorn, the company's chief sales, marketing, and strategy officer.
     
    He said a larger proportion of online shipments are originating at retail stores rather than distribution centers, which speeds delivery and enables retailers to use unsold merchandise to fill e-commerce orders.
     
    The growth of e-commerce, however, comes at a cost. Consumers have begun to expect free shipping and more retailers are feeling the impact on their bottom line as they try to keep up with Amazon's Prime program, which offers free two-day shipping for an annual fee.
     
    Last month, Macy's said higher shipping costs was hitting its profit margins.
     
    While most in-store sales now occur after a consumer has done research beforehand on a retail website, consumers are visiting fewer retailers when they go shopping.
     
    “Instead of going store to store, they're going online, figuring out what they want, and where they need to go. So that's impacting traffic,” said Bill Martin, founder of ShopperTrak, a firm that measures store traffic.
     
    That means that retailers with user-friendly websites that take advantage of bricks and mortar for delivery will benefit from the e-commerce growth.
     
    Some analysts praise Macy's, Best Buy Co. Inc.  Nordstrom and Gap Inc. for blending their stores and their e-commerce to keep customers.
     
    “They have to go hand and hand now - that's just how the shopper shops today,” said Ron Friedman, retail practice leader at the consulting firm Marcum LLP.

    You May Like

    Video Obama Remembers Fallen Troops for Memorial Day

    President urges Americans this holiday weekend to 'take a moment and offer a silent word of prayer or public word of thanks' to country's veterans

    Upsurge of Migratory Traffic Across Sahara From West to North Africa

    A report by the International Organization for Migration finds more than 60,000 migrants have transited through the Agadez region of Niger between February and April

    UN Blocks Access to Journalist Advocacy Group

    United Nations has rejected bid from nonprofit journalist advocacy group that wanted 'consultative status,' ranking that would have given them greater access to UN meetings

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Chinese-Americans Heart Trump, Bucking National Trendi
    X
    May 27, 2016 5:57 AM
    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Chinese-Americans Heart Trump, Bucking National Trend

    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Reactions to Trump's Success Polarized Abroad

    What seemed impossible less than a year ago is now almost a certainty. New York real estate mogul Donald Trump has won the number of delegates needed to secure the Republican presidential nomination. The prospect has sparked as much controversy abroad as it has in the United States. Zlatica Hoke has more.
    Video

    Video Drawings by Children in Hiroshima Show Hope and Peace

    On Friday, President Barack Obama will visit Hiroshima, Japan, the first American president to do so while in office. In August 1945, the United States dropped an atomic bomb on the city to force Japan's surrender in World War II. Although their city lay in ruins, some Hiroshima schoolchildren drew pictures of hope and peace. The former students and their drawings are now part of a documentary called “Pictures from a Hiroshima Schoolyard.” VOA's Deborah Block has the story.
    Video

    Video Vietnamese Rapper Performs for Obama

    A prominent young Vietnamese artist told President Obama said she faced roadblocks as a woman rapper, and asked the president about government support for the arts. He asked her to rap, and he even offered to provide a base beat for her. Watch what happened.
    Video

    Video Roots Run Deep for Tunisia's Dwindling Jewish Community

    This week, hundreds of Jewish pilgrims are defying terrorist threats to celebrate an ancient religious festival on the Tunisian island of Djerba. The festivities cast a spotlight on North Africa's once-vibrant Jewish population that has all but died out in recent decades. Despite rising threats of militant Islam and the country's battered economy, one of the Arab world's last Jewish communities is staying put and nurturing a new generation. VOA’s Lisa Bryant reports.
    Video

    Video Meet Your New Co-Worker: The Robot

    Increasing numbers of robots are joining the workforce, as companies scale back and more processes become automated. The latest robots are flexible and collaborative, built to work alongside humans as opposed to replacing them. VOA’s Tina Trinh looks at the next generation of automated employees helping out their human colleagues.
    Video

    Video Wheelchair Technology in Tune With Times

    Technologies for the disabled, including wheelchair technology, are advancing just as quickly as everything else in the digital age. Two new advances in wheelchairs offer improved control and a more comfortable fit. VOA's George Putic reports.
    Video

    Video Baby Boxes Offer Safe Haven for Unwanted Children

    No one knows exactly how many babies are abandoned worldwide each year. The statistic is a difficult one to determine because it is illegal in most places. Therefore unwanted babies are often hidden and left to die. But as Erika Celeste reports from Woodburn, Indiana, a new program hopes to make surrendering infants safer for everyone.
    Video

    Video California Celebration Showcases Local Wines, Balloons

    Communities in the U.S. often hold festivals to show what makes them special. In California, for example, farmers near Fresno celebrate their figs and those around Gilmore showcase their garlic. Mike O'Sullivan reports that the wine-producing region of Temecula offers local vintages in an annual festival where rides on hot-air balloons add to the excitement.
    Video

    Video US Elementary School Offers Living Science Lessons

    Zero is not a good score on a test at school. But Discovery Elementary is proud of its “net zero” rating. Net zero describes a building in which the amount of energy provided by on-site renewable sources equals the amount of energy the building uses. As Faiza Elmasry tells us, the innovative features in the building turn the school into a teaching tool, where kids can't help but learn about science and sustainability. Faith Lapidus narrates.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.8954
    JPY
    USD
    109.65
    GBP
    USD
    0.6827
    CAD
    USD
    1.3037
    INR
    USD
    67.037

    Rates may not be current.