by Doug Desjardins
Analysts were expecting a big jump in Cyber Monday sales, and the results lived up to the hype.
According to research firm comScore, Cyber Monday was the busiest online shopping day in history, with sales topping $1 billion in a single day for the first time. The $1.03 billion in total sales was 18 percent higher than the $887 million generated in 2009, an increase that surpassed even the most ambitious projections.
“The holiday online shopping season has gotten off to a very strong start, which is welcome news,” said comScore chairman Gian Fulgoni. “At the same time, it’s important to note that some of the early strength in consumer spending is almost certainly the result of retailers’ heavier-than-normal promotional and discounting activity at this early point in the season.” 
The average Cyber Monday shopper spent 12% more than last year with the total number of shoppers increasing 4 percent, according to comScore. The company also reported that online sales on Black Friday generated $648 million, a 9-percent increase over last year.
Online research firm Coremetrics reported similar results. Its index of more than 500 online retailers reported a 19.4-percent jump in Cyber Monday sales, far better than the 14% increase in 2009.
“Cyber Monday has turned into its own phenomenon,” said John Squire, chief strategy officer for Coremetrics, a unit of IBM. “Retailers have taken steps to turn it into a natural extension of the Thanksgiving buying weekend.”
Research firm Brand Keys reported that Amazon.com had the highest number of visits on Cyber Monday, followed by Wal-Mart and Target. Best Buy had the fourth-highest number of visits and – in something of a surprise – apparel retailer Kohl’s took the fifth position, generating more visits than department store chains like Macy’s, J.C. Penney and Sears.
Online specialists also generated an impressive increase in traffic. Microsoft’s Bing Shopping site reported a 40 percent increase in traffic compared to 2009 and Buy.com had its best Cyber Monday ever with a 48 percent increase over last year.
But some analysts cautioned against reading too much into the early jump in sales, suggesting that the fast start may not translate into a strong finish. Marshall Cohen, chief industry analyst for the NPD Group, said the holiday season is “off to a very healthy beginning in terms of momentum” but said that the next few weeks would tell the story.
“We may be seeing a consumer reacting to all the deep discounts and buying early because retailers have stretched the season out so much,” said Cohen. “If that is the case, retailers may end up with minimal growth at best for the holiday season.”
The NPD Group and other research firms have not yet changed their holiday sales forecasts, which range from a 2.3-percent to a 4-percent increase in sales.
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Online Retail Sales, Traffic Set Records on Cyber Monday
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