Cyber Monday or Cyber Week? Online shopping aims to lift retailers
Karen Mastrolonardo, a nurse from Mount Prospect, awoke early Monday to 12 e-mails on her iPhone - all with Cyber Monday deals.
She had been tracking certain products and knew how to judge good prices on gifts for her husband, two daughters and other relatives. So she jumped on her desktop around 8:30 a.m. and began comparing prices and ordering. She visited Web sites for Vera Bradley, Amazon, Borders and eBay and checked back frequently to see how prices changed during the day.
"I did this for the convenience and for the deals," Mastrolonardo said. "In no way would I be caught out on Black Friday. I can get good deals right here from my own home."
Mastrolonardo was among the bargain hunters who buzzed through Cyber Monday seeking deep discounts, free shipping or other deals. Many retailers complied with specials offered since or before Thanksgiving and Black Friday.
Internet shoppers already have rung up as much as $10.5 billion in sales so far, up about 3 percent compared to the same period last year. Black Friday alone had $595 million in online sales, up 11 percent over the same day last year, according to ComScore, which tracks Internet data.
Also, about 96.5 million Americans were expected to shop online during Cyber Monday this year, up from about 85 million in 2008, according to a survey for Shop.org by BIGresearch. Actual sales figures for Cyber Monday are expected in the next day or so, the groups said.
Walmart said Monday it was extending its Cyber Monday specials all this week, including hot sellers like a Transformers 2-pack bundle for $24, Kodak digital camera with 4-gigabyte card and accessory kit for $89, and a Sony 32-inch LCD high-definition TV for $398.
"The strength we saw beginning last week on Thanksgiving Day continued through the weekend, and we're exiting another very strong day," said Walmart.com spokesman Ravi Jariwala.
Hoffman Estates-based Sears Holding, parent to Sears and Kmart, also is extending its Cyber Monday online specials through Friday, as well as new deals every day through Christmas Day, said Sears Holding spokesman Tom Aiello.
In addition, Sears Holding has been using social media sites, including Facebook and Twitter, to offer various discounts only to those followers. Social media specials included 20 percent off any item, $5 off when you spend $50, free shipping and other deals, Aiello said.
"We're doing more with social media, compared to last year, because we want a broader conversation with our customers," Aiello said.
In many cases, Cyber Monday has become an online extension of Black Friday with shoppers out to maximize their holiday budgets, said Diane Swonk, chief economist and senior managing partner at Chicago-based Mesirow Financial.
"The weekend looks like it pulled more people in than we saw last year, but they spent less per capita," Swonk said. "I would expect the same for Cyber Monday. Moreover, the deals offered from Friday to Monday likely borrowed from the rest of the shopping season."
Internet sales represent just a piece of the overall mosaic for the economy, said Jack Ablin, chief investment officer for Harris Bank in Chicago.
"Given that most retailers are currently matching their best in-store deals on the Web, it stands to reason that Internet sales should be a positive surprise this year," Ablin said.
From the early indications, the trend in holiday retail spending seems positive, said Thomas Rowen, vice president and senior portfolio manager for Fifth Third Bank in Chicago.
"Since personal consumption is approximately 70 percent of the U.S. gross domestic product, retail sales are an important indicator of economic health," he said. "The prior two U.S. recessions saw a comparatively quick recovery in consumer and retail spending. The economic drag on consumers coming out of the current recession has been a focus of concern. Even a modest improvement in holiday spending this year over 2008 should be considered a positive sign."