Coremetrics Reports Scattered Bright Spots Amid Black Friday Online Spending
Report Shows Online Department Stores, Gift Stores, Health and Beauty Retailers and Jewelry Stores Are Early Winners in Online Holiday Shopping
SAN MATEO, Calif.– The online retail sector in general registered drops in ecommerce activities on Black Friday 2008 compared to the same period last year according to Coremetrics, the leading provider of digital marketing optimization solutions. The number of page and product views across the online retail sector in general was down 8.55 and 8.29 percent respectively compared to Black Friday 2007, suggesting that online retailers are doing a poor job of directing people to browse through their selection of products. The 18 percent drop in average session length also demonstrates that retailers are struggling to keep customers on their sites. Retailers are having difficulty in converting visitors to buyers, as evidenced by weakness in shopping cart and order sessions percentages. The notable exceptions among online retailers were department stores, gift stores, health and beauty stores and jewelers, all of whom registered encouraging increases in the number of consumers who completed online purchases.
* Department Stores were big winners on Black Friday, with a 12 percent increase in order sessions, a whopping 30 percent increase in average items per order, and 10 percent increases in average order value and in shopping cart conversion rate. These numbers suggest that department stores, more than niche retailers, succeeded in finding the right merchandizing formula for converting casual browsers into buyers.
* The Gifts sub-vertical registered an increase of more than 5 percent in shopping cart sessions and an astonishing 57.38 percent jump in orders session. The average number of items per order went up 6.50 percent, average order value went up 1.53 percent, and new visitor conversion rate went up 2.08 percent.
* The Health and Beauty sub-vertical saw an increase in the percent of browser and shopping cart sessions (6 percent and 10 percent respectively), as well as in average order value (10 percent). These increases suggest increased interest among consumers in “little luxuries,” a willingness to spend on small, feel-good indulgences as opposed to more expensive splurges.
* The Jewelry sub-vertical experienced a large increase in shopping cart sessions (80 percent) and order sessions (36 percent), suggesting that their target shoppers may be more insulated from the economic downturn than consumers at large.
“These numbers show that it’s possible for retailers to be successful even in a tough economy if they take the time to understand what is motivating their customers,” said John Squire, chief strategy officer for Coremetrics. “Early results show that department stores and gifts retailers did an outstanding job of attracting customers and of merchandising products that broadly appealed to consumers. In both of these sub-verticals consumers spent less time using onsite search engines – down 4.31 percent for department stores and 2.13 percent for gift stores compared to last year – suggesting that early and aggressive promotions offered by retailers are working.”
These findings are based on data from Coremetrics Benchmark™, the industry’s only peer-level benchmarking solution that measures online marketing results, including commerce data, against those of the competition. More than 300 leading U.S. retailers, representing approximately $20 billion in revenues annually, contribute their analytics data to Benchmark. All data is aggregated and anonymized. Abercrombie & Fitch, Alibris, Bloomingdale’s, Coldwater Creek, L’OCCITANE, Macy’s, PETCO and REI are just a few of the participating companies.
Coremetrics Benchmark comes standard with Coremetrics Analytics for no additional cost.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.