With so many Americans stuck at home since March, people have become entrenched in online shopping, however for more retail stores who have traditionally relied on brick and mortar stores, they have had to quickly establish an online presence to take advantage of the biggest shopping days of the year. This meant, marketing and customer brand awareness and engagement efforts had to be robust.
Well for those retailers that had successfully established an online retail presence, Cyber Monday was projected to be the largest online shopping day in U.S. history and it delivered just that - a 15.1% increase over last year with $10.8 billion in review for that day. These results are impressive despite early discounts from retailers to jumpstart the holiday shopping season.
On the other hand, in-store analytics provided by RetailNext reported brick and mortar stores were down 42.3% for the weekend (Friday through Sunday), with conversion (% of shoppers that make a purchase) and average transaction value up 3.8% and 4.9%, respectively. As a result, sales in brick and mortar stores were only down 23.9% because they were advantaged by the increases in conversion and average transaction value. Although, COVID-19 stay-at-home restrictions are still in place across the country in varying degrees, foot traffic overall for both non-mall stores and mall stores only down 41% vs 44% year-on-year, respectively. What is interesting about the small 3% delta between 2019 vs 2020 is that shopper traffic was largely down by 49% in 2020 vs 2019 during Black Friday shopping, vs only down 23% during Cyber Monday (seen as a positive trend). What that interesting data allows us to conclude is that more shoppers took advantage of online purchasing and utilized curb-side pick-ups or avoided shopping days that were overly busy or congested.
If this trend is any indication of how the rest of the holiday season is going to transpire, it will mean online sales will continue to be the primary driver of retail business, especially when thinking about keeping businesses alive through this pandemic and successfully growing market share into the future.
For reference, below are the numbers for Cyber Monday and Black Friday Weekend
- Cyber Monday online sales: $10.8 billion (+15.1% from 2019)
- Season-to-date online spending: $106.5 billion (+27.7% from 2019)
- Projected online sales for Giving Tuesday (12/1): $4.1 billion
- Percentage of total Cyber Monday sales during 7-11pm PST: 25%
- Percentage of total Cyber Monday sales from mobiles devices: 37%
- Small retailers vs large retailers sales on Cyber Monday compared to Oct daily average: 501% vs 486%, respectively
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