By Doug Desjardins
Online sales increased in Novemb
er and December as expected, helped by heavy promotions and a late-season snowstorm that forced many East Coast shoppers online.
According to research firm ComScore, online sales totaled $27 billion for the period from Nov. 1 to Dec. 24, a 5 percent increase over 2008. With the full month of December factored in, sales rose 4 percent to $29.1 billion. The sales increases were about on par with what ComScore and other firms expected for online retailers.
"Among the highlights of the season was the first $900 million online spending day ever and a strong, late-season surge, propelled by effective retailer promotions, guaranteed shipping and a major snowstorm on the eastern seaboard that convinced many to shop from the comfort of home,” said ComScore chairman Gian Fulgoni. “It’s possible that the better-than-expected end-of-year performance is a harbinger of renewed vigor and optimism for 2010 as the consumer economy seeks to rebound from one of the worst year’s in memory. At the same time, we need to remember that consumers’ spending power is still constrained by high unemployment, substantial debt and a newfound desire to save.”
Cyber Monday was the second-highest spending day of the year with $887 million in sales bettered only by “Green Tuesday” on Dec. 15 with $913 million, which established a single-day online sales record.
The category that saw the biggest increase in sales was something of a surprise. ComScore reported that online jewelry and watch sales posted the biggest gain with a 20 percent increase in sales, helped in part by dismal 2008 comparisons when holiday jewelry sales plunged 29 percent. Ranking second was consumer electronics with a 15 percent increase followed by computer hardware (7 percent) and books and magazines (6 percent).
MasterCard Advisors’ SpendingPulse retail survey reported similar results with sales increasing 3.6 percent for the period, benefiting from a 17 percent jump in December online sales. Kamalesh Rao, director of economic research for SpendingPulse, said the sales numbers were boosted by bad weather and “surprisingly strong” sales of electronics, which increased 7.3 percent.
“In general, we had a pretty decent holiday season,” said Rao. “We may be entering into a period of modest or moderate growth, maybe a tentative recovery.”
Research firm Cormetrics also reported a robust increase in sales. The group reported that sales during the period from Black Friday to Christmas Eve rose 13.6 percent compared to last year, numbers that were better than expected.
ComScore: 2009 Holiday Sales Up
Survey: Jewelry tops online holiday sales growth
