Posts Tagged ‘holiday sales’
SpendingPulse Detects Little Pre-Xmas Retail Activity
Tuesday, December 23rd, 2008
Reports of this year’s pre-Christmas retail environment showed that, despite deep discounts and high hopes, consumers did not shop as much as they did last year.
Retail sales are expected to fall by 8 percent in December through Christmas Eve, after falling 5.5 percent last month, according to MasterCard’s SpendingPulse report. Both declines, with the economy and weather in mind, added up to “one of the most challenging holiday shopping seasons in decades,” said Michael McNamara, vice-president of research and analysis.
With the average price per gallon down by almost 50 percent compared to last year, gasoline sales also dragged down total retail sales in December. Excluding gasoline, total sales had dropped by just 2 percent, according to the report.
And while lower gas prices usually lead to more shopping trips, very few storefronts survived this season’s battle in scrounging up sales without losing traffic. Retailers that saw increased traffic right before Christmas include Target, Best Buy, and Toys“R”Us – though their gains, even combined, could not compare to Wal-Mart’s 36 percent rise from last year, according to America’s Research Group.
While sales in specialty, men’s and women’s apparel all fell by at least 16 percent, MasterCard’s SpendingPulse noted that online retail sales “continues to be an area of relative strength” during the holiday season. However, other reports delivered mixed results.
According to comScore, last weekend’s online spending totaled $677 million – a figure that can be interpreted in two very different ways, with five less days in this holiday shopping season. As both the fourth weekend after Thanksgiving and the last weekend before Christmas, this year’s Dec. 20-21 sales can be interpreted as either a 17 percent year-to-year loss or almost a 100 percent gain, respectively.
“A positive late-season boost for online retail perhaps,” said Gian Fulgoni, comScore chairman, “but it’s ultimately not going to do much to make up for the significantly shorter shopping season this year.”
Tags: America's Research Group, christina lee, comScore, holiday sales, MasterCard's Spending Pulse
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Weakness Seen in Black Friday Sales, Anticipated in Cyber Monday Too
Tuesday, December 2nd, 2008
Though more shoppers sought out post-Thanksgiving discounts this year, sales figures released so far provide little hope for high profits for the remainder of the holiday season.
Traditionally at brick-and-mortar stores on Black Friday, and more recently at online stores on the following Cyber Monday, consumers have learned to eagerly pursue some of the lowest markdowns they will see over the holiday season. But with this year’s price cuts and overall consumer behavior, experts still wonder if retailers have been able to reap any profits this holiday season.
Consumer spending over the Black Friday weekend – running Thursday through Sunday – rose by 7.2 percent among more than 172 million shoppers, up from 147 million shoppers last year, according to the National Retail Federation .
But in contrast, the International Council of Shopping Centers found that retail sales rose by only 0.1 percent from the week before and by 1.3 percent from 2007.
“Black Friday sales were good due to bargains, but one good day did not fundamentally reverse the underlying weak spending trend throughout the month,” said Michael P. Niemira, chief economist, in a statement.
Lower retail sales resulted from heavier discounts, according to Richard Shaw, QVM Group investment advisor. “From that perspective, we imagine more is less this Black Friday,” he wrote in Seeking Alpha.
As brick-and-mortar store fronts cut prices in preparation for the holiday season, more retailers than ever – above 83 percent – surveyed by Shopzilla said they intended to participate in Cyber Monday. Meanwhile, the National Retail Federation found that more than 84 million people intended to shop online that day, up from 72 million last year.
Cyber Monday traditionally represents “the first significant spike in online holiday spending activity,” said Gian Fulgoni, chairman of research firm comScore , in a statement. While that day’s sales reports have yet to be released, experts have already deemed this year’s Monday to be less of a turning point and more of a continuum for this year’s characteristically cautious consumer spending
“We expect Cyber Monday to be relatively weak, since it’s very credit card sensitive,” said Richard Hastings, consumer strategist for Global Hunter Securities LLC, to Reuters. “We’re hearing consistence reports of more use of cash and debit cards in stores. That could weigh in on Cyber Monday.”
While keeping this year’s Black Friday online sales in mind – being just slightly better than anticipated – Fulgoni still considers Cyber Monday notable, but now for a different reason.
“With so much volatility right now in the variables that influence consumer spending, predicting where this online holiday season will end up has been far more challenging that in previous years,” he said. “That said, Cyber Monday may well prove to be an important indicator of whether the decline in spending that we’ve seen during the first few weeks of the online holiday season will continue for the balance of the year.”
Tags: Black Friday, christina lee, comScore, Cyber Monday, holiday sales, International Council of Shopping Centers, national retail federation, Seeking Alpha, Shopzilla
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October Gasoline Prices Lowest Since 2005
Tuesday, November 18th, 2008
The Bureau of Labor Statistics reported today wholesale energy and gasoline prices dropped dramatically in October – ultimately, a stark indication of decreasing demand resulting from the global economic downturn.
While wholesale energy prices fell 12.8 percent, wholesale gasoline prices dropped 24.9 percent after just a 0.5 percent decline last month.
So far in November, falling oil barrel prices and consumption have made current gasoline prices the lowest since summer 2005, according to the U.S. Department of Energy. The average retail price also dropped yesterday to $2.132 a gallon – a 2008 all-time low after prices peaked to $4.165 in July.
Meanwhile, executives and economic experts are still wondering how current prices will affect holiday retail sales, if at all. Kathy Lien of Global Forex Trading called the decline a “silver lining” for this season.
“Although gas station receipts will take a hit, lower prices at the pump will free up money for Americans to spend on basic necessities and holiday purchases,” the director of currency research wrote yesterday.
Eduardo Castro-Wright, head of Wal-Mart’s U.S. operations, has already reported such behavior this month, as made evident by company sales. As gasoline prices fell last month, traffic at its rural and urban stores increased, he said at a Morgan Stanley conference. Wal-Mart’s company sales have also risen 7.4 percent to $94 billion over the last quarter.
The International Council of Shopping Centers reported that nearly one of every four shoppers feel encouraged by lower gasoline prices to spend more – “albeit by only modest amounts.” Michael Niemira, chief economist and director of research, remains skeptical.
“Unfortunately, rising unemployment is holding back spending much more than the help that is coming from lower gasoline expenditures,” he said to the Wall Street Journal .
The U.S. Department of Energy’s information administration projected last week that regular gasoline prices will average at $2.37 a gallon. The average price of an oil barrel can also fall by more than half of its July 2008 price, to about $63.50.
Tags: Bureau of Labor Statistics, christina lee, gas prices, holiday sales, producer price index
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Retail Cargo Traffic Now Estimated to be Lowest Since 2004
Wednesday, November 12th, 2008
Experts now predict that 2008 retail cargo traffic will be the lowest since 2004 – a sign of cautious behavior from retailers this holiday season.
The National Retail Federation now expects cargo volume to total 15.3 million TEU (20-foot equivalent units) for the year, a 7.1 percent decline from last year. A month ago, the trade group foresaw a 6.5 percent drop in yearly retail cargo traffic, with total cargo volume being the lowest since 2005.
With retailers attempting to avoid unplanned post-holiday markdowns, “the balance between supply and demand is tougher than ever,” said Jonathan Gold, vice-president for supply chain and customs policy, in a statement.
The trade group foresees a mere 2.2 percent growth in holiday season sales – the lowest predicted increase since 2002 – and “one of the slowest years in quite some time for retail stores,” said J. Craig Shearman, vice-president of government affairs.
According to the National Retail Federation, after major growth in 2005 and 2006 – by about 9.8 and 6.7 percent, respectively – retail cargo volume peaked over the past six years at 16.5 billion TEU in 2007.
Though such a decline in traffic is significant, the year’s total volume still amounts to growth in volume since 2004, said Andrei Roudoi, IHS Global Insight manager of international trade forecasting.
Both Roudoi and the National Retail Federation predict that, once the holiday season ends, a still-strengthening U.S. dollar could help amount to a 2.3 percent growth next March. But “it is really too soon to say whether March will be an indication of any sort of trend” for the year, Shearman said.
Tags: Andrei Roudoi, christina lee, holiday sales, IHS Global Insight, J. Craig Shearman, Jonathan Gold, national retail federation, retail cargo traffic
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NRF: Economy Fails to Spook Halloween Consumers
Tuesday, October 7th, 2008
Bleak economic news cannot scare consumers faithful to Halloween, a recent survey shows. In fact, the average person plans to spend $66.54 to celebrate – an amount that has continued to increase over the past eight years.
“Consumers – who have been anxious and uncertain for the past several months – may be looking at Halloween as an opportunity to forget the stresses of daily life,” said National Retail Federation President Tracy Mullin in a statement.
The trade group’s survey, conducted last month by BIGresearch, revealed consumer behavior similar to that of 2002, another recession year. Back then, the average person spent $44.20, only 30 cents less than the year before.
Of more than 8,000 respondents, 64.5 percent said they planned to celebrate Halloween this year. Of these consumers, more than 50 percent said they plan to decorate their homes. Steve Rose, marketing coordinator of balloon and holiday gift wholesaler Burton and Burton, said in an e-mail that the company feels optimistic about this season, despite the state of the nation’s economy. “Consumers may be putting off major purchases like homes, cars and electronics, but they will still spend money to celebrate holidays and annual events.”
According to the National Retail Federation, consumers ages 18 to 34 still plan to spend the most of any other age group this Halloween. In 2002, they spent an average of $67 on holiday-related goods, including costumes, candy and decorations. This year, they anticipate spending an average of $83.
Retailers have also been using Halloween products as a way to market an entire season, “opening the promotional window through much of September and October,” said Tom Holliday, president of the trade group division Retail Advertising and Marketing Association.
“Much of [Burton and Burton’s] product line is treated more like ‘fall décor’ than just Halloween,” Rose said. “Things like decorative pumpkins, scarecrows, and harvest-themed products can be used all the way up until Thanksgiving.”
The holiday also still inspires at least a third of this year’s consumers to either dress in costume, take children trick-or-treating, or both.
“Parents just can’t ignore their children’s wants when it comes to dressing up,” said Kathy Grannis, National Retail Federation spokesperson. “Halloween is one of their favorite times of the year.”
The trade group also examined data from six years ago for a 2008 winter holiday sales forecast – though the outlook is not as good. Two weeks ago it estimated that sales will only rise by 2.2 percent, the slowest growth since the 1.3 percent rise in 2002.
Tags: Burton and Burton, christina lee, halloween, halloween decor, holiday sales, national retail federation, retail advertising and marketing association
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Cargo Traffic Still Decreasing, NRF Reports
Monday, October 6th, 2008
Even with the holiday season drawing near, store owners are continuing to brace themselves for slow sales with smaller inventories, according to National Retail Federation reports.
In addition, the trade group expects a 6 percent drop in yearly retail cargo traffic – 2 percent more than its prediction made less than two months ago.
For U.S. ports, October is traditionally the busiest time of the year, as store owners stock up for the holiday months. It is also when the National Retail Federation usually expects to see year-to-year growth. The D.C.-based trade group even predicted in August that October traffic levels would not fall below that of last year, despite month-to-month decreases reported since May.
The National Retail Federation has since released a report estimating that 1.4 million TEU (20-foot equivalent units) of cargo will flow through ten U.S. ports this month – a 2.9 percent decrease from October 2007.
“Retailers are tightening up their inventories to reflect what they expect to be able to sell during the holiday season,” Jonathan Gold, the group vice president for supply chain and customs policy, said in a statement.
In January, the National Retail Federation forecasted for the year a mere 3.5 percent growth in retail sales. In September, the group also predicted that holiday season sales will rise by just 2.2 percent from last year. Both estimates are the lowest increases predicted since 2002.
Article Source: http://www.nrf.com
Tags: christina lee, holiday sales, Jonathan Gold, national retail federation, retail, retail business, retail cargo traffic
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Maximize your Holiday Sales on eBay
Monday, December 10th, 2007
Like any small business, eBay store owners can have peak times and quieter times for their sales. A fishing store may see busier times in the Fall or Spring, and an eBay golf store may have most of its business in the warmer months. However, one area where every eBay store owner can have a busy period is during the Holiday season. That’s why it’s always worthwhile to have a plan in place, to maximize your eBay holiday sales.
Start Early
If you look at the most successful magazines, they always plan their big stories 8-12 weeks ahead of publication. That’s the same kind of approach you should take you’re your holiday sales on eBay. Start advertising in October for Christmas sales, January for Valentine’s Day, February for Easter, and so on. It can make all the difference.
Organize your Suppliers
If you have products that you get in bulk from suppliers, make sure they’re ready to provide you with everything you need. The last thing you want is for your popular Christmas gift to run out of stock because your supplier provided more to a competitor. Make sure you’re top of their list.
Promote Seasonal Products
This may seem obvious, but you’d be surprised how many sales eBay stores miss out on this simple equation. If you’re a jewelry store, and you have little elf earrings, promote them at Christmas. If you’re a chocolate fountain seller, promote them for Valentine’s Day and Easter. Taking time to promote the right products at the right time can mean the difference between good sales and sky-high sales.
Use the Buy It Now option
Although eBay is known for the great deals you get from bidding, the Buy It Now option is becoming just as popular. Allowing buyers to make an instant purchase, it’s a very useful tool for holiday sales. After all, it’s like the equivalent of an “impulse buy”, and on top of that, no one wants to wait for bidding to end on a holiday gift.
Free Shipping
Okay, so it might cost you a little but the benefits of free shipping are worth it. The extra buyers will boost your sales, and combined with the Buy It Now feature, you can pretty much guarantee your eBay holiday sales success.
Use PayPal
The preferred choice of payment for the majority of eBay buyers, PayPal is easy and convenient, yet there are still sellers who prefer credit cards. While this may be easier to manage in the long run, if you want to maximize your holiday sales then offering PayPal as an option is a must. Payment is immediate, and because of that, shipping the goods can start right away. Quicker shipping will lead to more sales, especially around Christmas.
Change your Theme
Although you might have a slick and professional storefront at the minute, why not make it even more inviting during the holidays? Have Santa Claus welcoming buyers at Christmas, or the Easter Bunny at Easter. Anything that can tie your store into the holidays will make it all the more attractive for buyers, and the sales should reflect that.
Tags: advice, danny brown, E-Commerce and E-Business, ebay, Generating More Sales, holiday sales, holidays, online auction, Sales, tips
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5 Ways to Rev Up Your Holiday eBay Sales
Monday, November 19th, 2007
With Christmas just around the corner, the busiest time of year is coming up for owners of small businesses, and this is particularly true of you’re an eBay seller. With sales expected to increase by at least 35-40% over the holiday period, it’s important to make sure you’re ready for the rush. Thankfully there are some excellent tips to rev up your holiday eBay sales and best of all they’re fairly easy to manage.
Be Competitive on Shipping
One of the biggest complaints from many eBay users is that shipping rates are often more expensive than they should be. To ensure you’re not one of the eBay sellers this refers to, try and offer the most competitive rate you can. For example, look at other sellers and compare their prices to yours, and see if you can afford to charge less. You’ll be amazed at how much difference even a dollar can make to your selling success. Even better, if you can organize free shipping to local areas, again this will increase your chances of more sales.
Make Sure You Personalize
One of the best ways to really increase your holiday eBay sales is to make sure you stand out from the crowd. With the millions of eBay users, however, this can be easier said than done. Therefore, personalizing the description of whatever you’re selling can give you a head start over everyone else. Use humor to describe the item; or give an example where it could really come into its own as a gift. Anything that can separate you from the countless other sellers can only be good for your sales.
Be Prepared for the Rush!
One of the traits that buyers on eBay share with their offline cousins is the penchant to wait until the last minute to buy. Whether it’s because it seems to be a Christmas tradition, or simply a belief that sellers will drop their prices, there’s guaranteed to be a rush of sales around the last 10-14 days before Christmas itself. Therefore, give yourself the best chance of capturing the sales this particular shopper brings by offering a next-day delivery service, or use eBay’s handy ‘Get It Fast’ option.
Have a Return Policy
We all know what it’s like - we buy a gift, and the recipient doesn’t like it for whatever reason. This is where gift receipts for retailers are a Godsend, and it’s also why you should have a return policy in place for all your sales. Shoppers are fickle, but they can also be very loyal, and this is particularly true if they know they can return an unwanted item without any difficulty. Offer a full refund on unsatisfactory purchase - even an exchange goods option will put you ahead of sellers who don’t have this option in place.
Be Open to Special Holiday Requests
One of the best features of eBay is the security offered to both buyers and sellers, thanks to payment methods like PayPal and their confirmed address requirements. However, the holiday season will normally see most purchases bought as gifts, and being sent to a different address. Instead of losing customers because you’re unwilling to send to an address that’s not verified, using a little judgment will allow you to benefit from extra sales. After all, the buyer is probably going to be a verified eBay user, and there are still many security measures in place to protect you.
These are just a few ways you can rev up your holiday eBay sales. The easiest thing to do is ask yourself what you’d like to see if you were a buyer; then, simply transfer this to your seller mindset, and watch the sales come in. Happy Holidays!
Tags: advice, danny brown, E-Commerce and E-Business, ebay, Generating More Sales, holiday sales, online auctions, Sales, seasonal, seasonal sales, tips
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