Thanksgiving holiday came and went with Black Friday breaking records from last year.
The highlights of the numbers that have been quoted in the press today are:
- Sales increased 6.6% over the same day last year, representing $11.4 billion in retail purchases and biggest amount ever spent during the day.
- Retail foot-traffic increased by 5.1% over 2010 Source: Shoppertrak
Looking beyond the headline numbers, here are some other interesting data points:
- Black Friday has been stretched with pre-promotions and longer shopping hours. Retail sales were up over 3.5% the week of November 12th and 18th
- Data from ShopperTrak indicated that consumers are visiting fewer stores per trip (being more efficient due to time crunch) with average of 3.1 stores down from 3.19 last year. Shoppers are also doing more research on purchases before the trip.
Another report from ComScore shows that Black Friday extended online before Cyber Monday.
- $12.7 billion has been spent so far online to date this holiday season with $816 million in Online sales on Black Friday
- Thanksgiving Day online sales increased 18% to $479 million (perhaps after dinner shopping instead of watching Thanskgiving football?)
- Top five online retail properties (excluding auction sites) are Amazon, Walmart, Best Buy, Target and Apple with Amazon having 50% more visitors than any other retailer
What does this mean for retailers? Here are some thoughts:
- While the initial Black Friday numbers are promising, a lot of the numbers are driven by promotions and door buster sales. Since 20% of the sales for some retailers are done inthe holiday season, this is a marathon, not a sprint.
- Omni channel is here to stay. Consumers are researching online and shopping across channels (web, store, phone, mobile).
- Omni channel is not a zero sum game, increase in e-commerce does not necessarily decrease store sales, and longer store promotion for Black Friday does not necessarily cut into e-commerce sales. Well executed omni channel strategy by retailers increases wallet share of the consumer.
Want to learn more about OmniChannel? Check out the upcoming Big Idea session "Catch 'em and Keep 'em. Satisfying Today's Shoppers" on January 17th at National Retail Federation Conference, New York
For more information on Cisco at National Retail Federation 2012, please visit http://www.cisco.com/go/nrf2012