BTW News Briefs

NRF Predicts Holiday Sales to Increase Six Percent

On November 22, the National Retail Federation (NRF) said that as the holiday season gets underway, retailers have cause to be optimistic, thanks to a recent spate of positive economic indicators, including strong October retail sales and dropping gasoline prices. The NRF has revised its holiday sales forecast and estimates total holiday retail sales will increase six percent over last year to $439.53 billion. NRF had previously forecast a five percent sales gain on September 21.

NRF defines holiday retail sales as retail industry sales that occur in the months of November and December. Retail industry sales include most traditional retail categories including discounters, department stores, grocery stores, and specialty stores; they exclude sales at automotive dealers, gas stations, and restaurants.

Cyber Monday a Growing Phenomenon

While traditional retailers will be monitoring store traffic and sales on Black Friday, online retailers have set their sights on something different: Cyber Monday, the Monday after Thanksgiving, which is quickly becoming one of the biggest online shopping days of the year, according to the National Retail Federation (NRF). For the past few years, online retailers have found that sales on the Monday after Thanksgiving have been creeping higher, giving retailers an additional reason to be jolly during the ceremonial kickoff to the holiday season. According to the Shop.org/BizRate Research 2005 eHoliday Mood Study, 77 percent of online retailers said that their sales increased substantially last year on the Monday after Thanksgiving, a trend that is driving serious online discounts and promotions on Cyber Monday this year.

Experts believe that an increase in web traffic could stem from consumers who may have faster or more secure Internet connections at work and choose to shop there, or those who may have been unable to finish all of their shopping over the Thanksgiving weekend. Analysts also expect many consumers to shop on Cyber Monday from home after work or when their children are sleeping. Regardless of the reason or the time of day, consumers are expected to head online in droves on Cyber Monday, many during work hours.

According to a recent Shop.org survey, conducted by BIGresearch, more than one third of consumers (37 percent), or 51.7 million people, said they will use Internet access at work to browse or buy gifts online this holiday season. The survey found that more than half of young adults 18 - 24 (51percent) and nearly half of those 25 - 34 (49 percent) will be shopping online during work hours. The survey also found that men (42 percent) are more likely than women (32 percent) to shop at the office. Online retailers will be ready for the surge in sales, and many are offering extra incentives to encourage people to shop online. According to the eHoliday Mood Study, 43 percent of online retailers plan to offer special promotions and discounts on Cyber Monday.