Strong Black Friday online sales will boost the sentiments for a faster growth of retail sales on Cyber Monday. The optimism comes in the wake of more consumers preferring to use online shopping with new age devices, like smartphones and tablet PCs that can be used from the comforts of the home. The research organizations data also supports this view.
While comScore expects Cyber Monday sales to grow 20% this year compared to 22% growth last year, retailers' irresistible offers could allow them to add another $40 - $65 million-- so as to achieve 23% - 25% growth in the current year.
Data from comScore indicates that online sales have crossed the $1 billion mark for the first time on Black Friday, posting sales of $1.04 billion. This represents 26% growth over the last year. Amazon.com (AMZN) continues to be the most visited retailer site on Black Friday. Wal-Mart (WMT), which redesigned its website recently, was the second most visited retailer. Best Buy (BBY), Target (TGT) and Apple (AAPL) followed them in that order.
Retailers have also seen strong sales for Black Friday weekend recording estimated sales of $59.1 billion compared to $52.5 billion last year, according to the National Retail Federation or NRF. Significantly, average spending and traffic advanced 6.3% and 9.3% to $398 and 247 million shoppers respectively. This supports that consumers are willing to open their purse more than predicted.
For Cyber Monday, there has been a steady increase in traffic and revenue growth over the last few years.
Cyber Monday Sales
Sales in $ Billion
% of Change
The above table indicates that the growth rate has been consistently more than 15% in three out of the last four years on Cyber Monday. The last two years' average growth rate works out to 19%. This is more than comScore expectations' of 17% online shopping growth for the entire holiday season.
The competition is already running high among retailers to capture a sizable share from online shopping. For this, retailers are luring consumers with various offers, including free shipping. There are also special deals on items like jewelry, apparel and electronic items such as Apple's iPad, iPhone 5, Microsoft's (MSFT) surface tablet, Windows 8 software and Google's (GOOG) Next tablet PC.
Meanwhile, International Data Corporation or IDC expects 48 million shoppers to use their smartphones in the holiday season, compared to 20.5 million last year. This suggests a whopping 134% growth. This should support additional sales growth to cross $1.5 billion mark in the upcoming Cyber Monday. This will represent 20% growth over the previous year.
However, further upside in growth rate is quite possible since another $40 - $65 million of sales will add a growth rate of up to 25% over the last year for Cyber Monday. This looks quite possible given the increased promotional activities, and the threat of higher taxes next year forcing consumers to spend more on luxury items this year.