Dec 1, 2009
With almost every American feeling the pinch, every little bit counts. Some hopes are pinned on e-commerce sales in the United States. However, even as it toppled analysts’ sales estimates, it is unlikely to be large enough to change the outlook in holiday spending this season. According to Forester Research Inc, e-commerce represents only about 6 percent of total spending, while significant, it is not enough to offset the pace of decline in in-store sales.
Online retailers have a lot to be happy about though. Online sales are around 14 percent higher so far compared to last year. A lot of consumers are going online to compare holiday deals and search for discounts. As such, traditional retailers are given a chance to increase their sales by offering irresistible deals.
But people are not only looking for deals on the internet, they are also browsing in stores like Best Buy Co, Target, and Wal-Mart to save money. This year, more people visited stores during the Thanksgiving weekend but they spent less on average. The trend worries many retailers but they are coming up with ways to stay profitable.
According to the chief executive officer of Mercent Corp, “retailers are being aggressive with promotions and a low-cost assortment of goods and value-conscious consumers are responsive to those deals.” Mercent tracks sales associated with internet advertising from 120 merchants. That is, the number of clicks on internet ads that result in sales.
The last several days marked the start of the holiday shopping season in America. Black Friday, the first day after Thanksgiving, is traditionally the time when retailers start becoming profitable. This year, it was promoted as “Cyber Monday” because of the boost in internet shopping.
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