Retail websites took market share from bricks-and-mortar stores over the five-day period from Thanksgiving through Cyber Monday, according to an Internet Retailer analysis of holiday data.
Meanwhile, Amazon.com Inc. slightly increased its lead over competitors, says e-commerce analytics firm Slice Intelligence.
E-commerce accounted for 20.2% of retail sales over the five-day period starting with Thanksgiving, an increase from 18.4% last year, based on online sales data from digital technology provider Adobe Systems Inc. and total retail sales data from retail research firm Consumer Growth Partners. Adobe data shows online sales grew 15.2% for the period and CGP says total sales grew 4.9%. Based on those two datasets, Internet Retailer infers store sales increased about 2.5%.
The web accounted for 57.6% of retail growth over the five-day period, based on Internet Retailer’s analysis.
A separate report from First Data Corp., which processes credit and debit card transactions from retail stores and websites, indicates web purchases accounted for 28% of retail sales during the five-day period, up from 24% in 2016. E-commerce took a slightly larger share on Thanksgiving Day and Black Friday—29% this year versus 25% last year, First Data says.
Amazon, No. 1 in the Internet Retailer 2017 Top 1000 ranking of North America’s leading online retailers, captured 29.2% of U.S. online retail sales over “Cyber Week”—the Tuesday before Thanksgiving through Cyber Monday—according to Slice Intelligence, which bases its estimates on an analysis of the email receipts received by some 5 million consumers. That was a bit higher than the 28.6% Slice estimated for Amazon during the same holiday period a year ago, though well below Slice’s estimate of Amazon capturing 42% of online sales in the pre-holiday period in 2017.
The big story is that major retailers’ websites registered strong results last week, Slice says. “Almost across the board, the larger online retailers posted significant growth for the entirety of Cyber Week as Best Buy, Amazon, Apple and Walmart grew between 19% and 25%,” Arye Zucker, a spokesman for Slice, wrote in a blog post yesterday. “Among the top five Cyber Week retailers the big winner, though, was Target who grew by an astonishing 44% over Cyber Week 2016.”
Here are the five leaders in online sales over the week-long holiday period (Nov. 21-27), according to Slice Intelligence:
Slice estimates that online sales grew 18% over the Cyber Week period—the Tuesday before Thanksgiving through Cyber Monday—largely as a result of a 14% increase in the number of online shoppers. Average order value was $157.87 on Black Friday and $140.04 on Cyber Monday.
The strong November sales bring purchases forward, causing a lull in shopping in December, says Craig Johnson, president of Consumer Growth Partners. To counteract that lull, Johnson encourages retailers “to ping your loyalist shoppers who haven’t bought in the past month to reactivate them. And for customers that did buy, suggest something compatible with what she bought.”
Late in the holiday season, the two marketing channels that retailers can most effectively ramp up are paid search ads and email, says Sucharita Kodali, an e-commerce analyst at Forrester Research Inc. “We still don’t see retailers adjusting their search or display ads in real time, so that is worth an investment if a retailer doesn’t do that now,” she says.Favorite