'Cyber Monday' clicks with shoppers
Shoppers flocked to the Internet during the industry-tabbed "Cyber Monday" in search of deals they may have missed in Friday's crush at brick and mortar stores.
Although only the beginning of the season, and not generally the biggest shopping day of the year, the early trends seem to indicate that American's insatiable appetite for consumer goods will not slack this year.
One of the bigger destinations, Draper-based Overstock.com, reported that its sales were exceeding last year by double digits. Chief Executive Officer Patrick Byrne said they expected to sell more than $9 million worth of products on Cyber Monday alone.
"It looks like the biggest day in our history," Byrne said. "It's well up from last year."
Like many retailers, Overstock.com had big sales going for Monday only. Those included televisions at 35 percent off, navigation systems at almost 50 percent off, and pea coats discounted as much as 75 percent.
"This is becoming less of an oddity," he said. "It's a better shopping experience, and you can save a lot of money, than when you go to a mall."
According to a survey from shopping.com, which is owned by eBay, 71 percent of online retailers are planning to offer discounts this holiday season. They are also offering additional incentives, such as free shipping and overnight delivery, to help address some of the more common concerns for online shoppers.
According to estimates from comScore Inc., a Virginia-based company that tracks online commerce, more than $700 million was expected to be spent online by shoppers on Monday alone. They predict that the biggest day will probably come in mid-December.
Not all retailers are relying on Monday alone to draw shoppers. In what may become a trend, Wal-Mart is advertising "Cyber Week" specials which will last until Friday. It had the same promotion last year, and while most retailers are still sticking with a one-day deal, many — including Cabela's and Circuit City — have extended the specials into Tuesday or Wednesday.
"We feel customers want the chance to enjoy unbelievable online specials beyond just a single day," said Raul Vazquez, Walmart.com CEO. "We feel even more bullish coming out of Thanksgiving and Black Friday because of the strong days we had," Vasquez said in an interview. "The consumer has been educated for the last five years that the retailer gets nervous," said Marshal Cohen, chief industry analyst at NPD Group Inc. "They begin to put products on sale, and the consumer responds very quickly to that.' If there's a cloud hanging over the retail sector in general, it's that shoppers spent an average of $347.44, 3.5 percent less than a year earlier, on purchases from Nov. 22 through Nov. 25 — prefering less-expensive digital-photo frames and cashmere sweaters, the Washington-based NRF said, based on a poll by BIGresearch.
E-mail: jloftin@desnews.com
Recent comments
Overstock.com is not in Draper, it's in Cottonwood Heights.
Mr. Me | Nov. 27, 2007 at 8:43 a.m.
