Online Shopping: Who's Winning on Cyber Monday?

by Robin Fiedler

The expectations are that Cyber Monday sales, and online holiday sales overall, will increase in 2009 compared to 2008. Even if overall retail sales are predicted to be flat, online sales are expected to increase as more shoppers cyber-shop.

Laura Smarandescu, an assistant professor of marketing at Iowa State, comments, "Although traditional retail shopping is likely to slow down, as more and more people turn to online shopping, I predict that online shopping volume will increase." shopping-bag

Smarandescu's prediction is starting to come true. comScore reports that 2009 online sales from Nov. 1 to 23 increased. "For the holiday season-to-date, $8.21 billion has been spent online, marking a 2-percent increase versus the corresponding days last year." The increase in sales is good news even though they are still below previous years; it's one of the first positive upturns this shopping season. comScore is predicting a 3% increase in Nov-Dec. online holiday sales totaling almost $29 billion.

Not every retailer lost in 2008, and online merchants who won last year may indicate the new holiday online shopping demographic. Mark Brohan from Internet Retailer discussed the Top 500 e-merchants, and not surprisingly Amazon remained No. 1 with sales increasing almost 30% in 2008, but the increase was attributed to worldwide expansion.

Some of the largest-percentage growth in online shopping came from apparel retailers. "Other merchants, especially chains that target a younger and more web-savvy audience, enjoyed solid growth. Just two years after launching its web store, Aéropostale Inc. (No. 156) increased web sales by 85% to $79 million in 2008, while Yoox.com (No. 79), an international e-retailer, grew sales by 57.9% to $192.1 million," according to Brohan.

Who's to blame for these impressive numbers when most retailers are experiencing a decrease in sales? Young adults, and mostly young women. Brohan reports "Other youth-oriented chains with notable increases were American Apparel Inc. (No. 236), up 55.1% to $39.4 million; Hot Topic Inc. (No. 211), up 33.4% to $45.7 million; and American Eagle Outfitters Inc. (No. 54), up 26.1% to $307 million."

Two college students who write in The Daily Beacon for the University of Tennessee share their "web saavy" knowledge. Katie Freeman advises her fellow college students to Google their favorite store "followed by the word 'coupon.' A lot of stores have deals online or coupons you can print off and take with you to the store. From the company's perspective, providing coupons online gets more traffic on the Web site. From my perspective, I might save 40 percent on my purchase for a 2-cent printing fee in Hodges Library."

Also, Flora Theden outlines her online strategy. Take advantage of Cyber Monday and free shipping offers by visiting coupon websites. She adds, "If you enter the promotional code, "HOLIDAY09" for your order of $100 or more on http://www.nordstroms.com between now and Dec. 20 you will receive free shipping." Theden also recommends using Twitter for notification of online discounts, pointing out that Overstock.com "has offered 30 percent off on Eau de Parfum Spray from Stella McCartney, 10 percent off all baby items and 25 percent off on Muk Luks Nordic Knit Sherpa Boot." Freeman and Theden are representatives of the new trend in online shopping.

And so the young women have it.

Sources

Brohan, Mark. "The Top500 Guide." Internet Retailer. 20 Nov. 2009.

"comScore Forecasts 3 Percent Growth for 2009 Holiday E-Commerce Spending." comScore. 24 Nov. 2009.

Freeman, Katie and Flora Theden. "Holiday Gift Shopping on a College Budget." The Daily Beacon. University of Tennessee. 17 Nov. 2009.

"ISU Experts Project Another Lean Holiday Retail Season, Giving Consumers Edge." Iowa State University. 11 Nov. 2009.