Jumping Holiday Sale 2019 | Practical e-commerce


The 2019 season change showed mixed results, with online revenue growing sharply but sales of bricks and mortar showed little or negative growth.

The entire holiday – November 1 to December 31 – increased overall revenue overall. MasterCard SpendingPulse, which records figures from November 1 to December 24, reported a total US retail increase of 3.4 percent compared to 2018, with online sales increasing by 18.8 percent.

MasterCard reported that sales of holiday e-commerce accounted for 14.6 percent of total retail spending. Clothing was the highest category for e-commerce, with online sales increasing by 17 percent compared to last year, according to MasterCard. However, the total increase in clothing sales was only 1 percent, which means that sales of bricks and mortar in this category were underperforming.

figures

Salesforce estimated total global vacation sales at $ 723 billion.

The Holiday Recap report from Adobe Analytics reported that online spending in the US was $ 142.5 billion, which is equivalent to 13.1 percent year-over-year growth for November 1 through December 31.

Additional US data from Adobe:

  • Average daily online revenues exceeded $ 2.3 billion during the holiday season, up from $ 2.1 billion in 2018, which is 13 percent year-over-year.
  • Every day, $ 1 billion in online sales exceeded $ 850 million on Christmas Eve. Also, Christmas Day sold online sales for $ 1.1 billion, which shows that gifts don't necessarily have to arrive on time and that people can shop for themselves that day. 64% of all visits and 48% of revenue came from smartphones on Christmas Day.
  • Smartphones accounted for 58 percent of website traffic and 84 percent of holiday season growth in e-commerce.
  • Purchases via smartphones accounted for a record transfer of $ 50 billion in sales, up 14 percent in 2018.
  • Smartphone revenue was 36 percent of the season's total sales.
  • Consumer electronics has the lowest share of revenue from smartphones with 18 percent.
  • Conversely, smartphones accounted for 45 percent of clothing and footwear sales and 46 percent of jewelry and cosmetics sales.
  • Large ecommerce suppliers (more than $ 1 billion in annual revenue) outperformed small suppliers (less than $ 50 million a year) this holiday, with 65 percent higher sales than last year. Small traders had an increase of 35 percent.

BOPIS

Adobe says BOPIS – online store pickup – grew 35 percent year-over-year, with consumers using this option most often during the seven days just before Christmas. Salesforce estimated that retailers offering BOPIS saw 56 percent more active digital users during the last five days of the season.

Consultancy firm Kurt Salmon Accenture Strategy found that the average pickup time decreased by 30 percent from 2018, down to 2.5 hours. Eighty-eight percent of the order was processed on time, hitting 72 percent in 2018.

Kurt Salmon's CEO Steve Osburn stated: “BOPUS is the real bright spot this year. Historically, this was a difficult transaction for the customer, while now retailers have built ease and convenience into the experience by placing kiosks in front of the store and distributing parking spaces. "

More physical retailers are likely to join the BOPIS movement as it draws merchants, who would otherwise only buy online, to the stores. BOPIS will be an important differentiator for success in brick and mortar.

Bricks and mortar

The results for retailers of brick and mortar were bleak. MasterCard SpendingPulse estimated that the department stores had a total sales decline of 1.8 percent, while their online sales increased by 6.9 percent. Here is a snapshot.

  • J. C. Penney & # 39; s comparable store sales decreased by 7.5 percent from last year for the nine weeks ending January 4.
  • Kohl reported that sales from comparable stores in November to December decreased by .2 percent from 2018.
  • L marks, which owns Victoria & # 39; s Secret and Bath and Body Works among other brands, said comparable store sales for the nine weeks ending January 4 fell 3 percent.
  • Macy's reported that comparable store sales decreased 0.7 percent from 2018 during the nine-week holiday period ending January 4.
  • Goal saw a slight increase, only 1.4 percent in physical stores and digital channels.

The results are likely to cause serious concern for the mall chains in 2020. Christmas holiday sales often account for more than 50 percent of retailer annual sales. We will probably see announcements for a significant number of store closures soon. Macy's has already announced the closure of 29 stores by 2020, while Pier 1 Imports will close 450 stores. Chico's and the Gap have both announced that they will close over 200 stores.



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