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Retailers bet on 'Cyber Monday'

Nov 26 2007 13:09

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New York - Retailers are hoping last week's strong start to the holiday shopping season at malls and stores translates into a busy buying season online, which officially begins on Monday.

The Monday after Thanksgiving, tagged "Cyber Monday" by the National Retail Federation, marks the first big online shopping surge for many merchants as consumers return to their work computers.

A number of retailers are hosting one-day sales or special offers for the occasion. Internet research firm comScore estimated online sales may exceed $700m online on Monday.

As for brick-and-mortar outlets, ShopperTrak RCT, which tracks total sales at more than 50 000 retail outlets, reported late on Sunday that sales on Friday and Saturday combined rose 7.2% to $16.4bn from the same two-day period a year ago.

The biggest draw was electronics, benefiting chains like Best Buy and discounters such as Wal-Mart Stores and Target. Popular-priced department stores including JC Penney and Kohl's Corp drew in crowds with good deals.

Toy stores like Toys "R" Us fared well too. Still, apparel sales appeared to be mixed at mall-based clothing stores, though a cold weather snap helped spur sales of outerwear and other winter-related items.

"This was a really good start," said Bill Martin, co-founder of ShopperTrak. "There seemed to be a lot of pent-up demand."

Now the attention moves online. Toys "R" Us will hold a one-day online sale and rival eToys.com will launch a two-day sale. Wal-Mart Stores will begin five days of online-only sales.

Online jeweler Blue Nile will give customers 20% off purchases paid through PayPal, eBay's electronic payment division. Target, Circuit City Stores, Sears Holdings, Crate & Barrel, the Discovery Store and Overstock.com are among dozens of retailers offering free shipping that day.

Nearly one-third of retailers are also having special one-day sales for Cyber Monday while 42% plan some kind of promotion, according to the NRF's annual survey.

The number of retailers hosting online deals on the Monday after Thanksgiving has surged to 72% of those polled from 42% just two years ago.

- Dow Jones News

 
 
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