The madness has begun! 

If you spent any amount of time in front of your television this weekend you inevitably saw many an intrepid reporter documenting the crowds at the mall - all while riding an escalator (for those of us in New England, we will soon see these same reporters standing in front of the season’s first mountain of road salt).  This evening’s newscast will likely lead with a story of the US workforce eagerly shopping away on the company’s broadband and taking advantage of the growing number of discounts and free shipping available online.  Black Friday has officially gained a sister in Cyber Monday.  But while Cyber Monday is a great promotional angle, the real story is in the shifting season. 

As many have documented, this holiday season is projected to see lower total retail growth than each of the past 5 years.  The NRF has projected a 4% growth rate overall which has kicked the retail world into the full promotional zone.  However, online sales are projected to see growth rates near or above 20% this season.  Whether gas prices, crowds or convenience are keeping them home, more Americans will shop online and returning Web shoppers will spend more of their budget online this season. 

Early estimates from Black Friday support the projections as stores saw an estimated 8% increase over last year while web sales outpaced last year’s same day by 22%.  And we’re just getting started.  The peak online shopping days likely won’t be seen for another week or two.  Last year’s peak days fell in mid-December and given a higher penetration of broadband to the home and increased consumer confidence in shipping systems, we expect to see that trend continue this season. 

So, enjoy the increased attention from the press on Cyber Monday and use it to drive increased attention from shoppers throughout the season.  Target your promotions to deliver value where warranted while maintaining margins.  Learn from the early shoppers to drive more relevant recommendations and offers for the procrastinators.  Optimize your category and search pages for each shopper so that they can find just the right present for each person on their list.  The satisfaction shoppers will get when their gift is opened and enjoyed will drive them back into your stores post holiday – especially when they receive your personalized, gift card promotion. 

Merry Cyber Season!   

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