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

India PM Modi's party distances itself from religious conversions

BJP under fire for being slow to rein in hardline affiliate groups allegedly trying to promote a Hindu-dominant agenda by luring Muslims and Christians to convert to Hinduism More

Anti-Whaling Group Found in Contempt of Court

Radical environmentalists who threw acid and smoke bombs at Japanese whalers in the waters off Antarctica continue their campaign to disrupt Japan's annual whale hunt More

UN's Ban Urges End to Discrimination Against Ebola Workers

Ban was speaking in Guinea on the second day of a whistle-stop tour aimed at thanking healthcare workers of the countries at the heart of the epidemic More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Sudan School Becomes Target of Aerial Attacksi
X
December 19, 2014 12:45 AM
The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8143
JPY
USD
119.23
GBP
USD
0.6390
CAD
USD
1.1596
INR
USD
63.304

Rates may not be current.