Best 'Cyber Monday' Ever Helps Boost November Retail Sales
Dec 2nd 2010 3:30AM
Updated Dec 2nd 2010 3:34AM
U.S. shoppers spent more in November, preliminary sales reports and new data show, as they responded to "Black Friday" deals and promotions that began early in the month.
The news comes a day after data showed "Cyber Monday" was the biggest one-day online shopping day ever, and adds to the hope that this holiday shopping season will be less muted than the last two.
But Americans are still spending cautiously as they face high unemployment and an uncertain economy. Analysts expect holiday sales to rise only a few percentage points overall.
Revenue in stores open at least a year, a key measurement of a retailer's fiscal health, is expected to rise 3.6% in November, according to a poll of analysts by Thomson Reuters (TRI).
And a positive November might simply mean consumers lured by discounts pushed holiday spending into November from December.
Clothing Sales Grow
MasterCard (MA) Advisors' SpendingPulse, which tracks spending across all transactions including cash, released data Thursday showing spending on family and children's clothing rose more than 10% in November, with all types of clothing recording growth. Teen clothing was particularly strong, up 12%. Women's clothing was up about 4% and men's clothing was up 7%.
"November numbers are in good shape, it is a very solid first part of the holiday season," said Mike McNamara, vice president of research and analysis for SpendingPulse.
Spending on luxury goods rose 1.6%. Electronics were down 1%, reflecting lower prices for items such as flat-screen TVs.
Overall online sales rose 12% during the month, according to SpendingPulse figures.
Meanwhile, many retailers were set to report revenue in stores open at least one year on Thursday. Among early reports, teen retailers Aeropostale (ARO), Zumiez (ZUMZ) and Hot Topic (HOTT) all reported November revenue in stores open at least a year that beat expectations.
Record-Setting Cyber Monday
On Wednesday, Research firm comScore (SCOR) said online spending rose 16% from a year ago to $1.03 billion on the Monday after Thanksgiving, the first one-day spending total above $1 billion.
Since the beginning of November, online sales are up 13% to $13.55 billion, according to comScore. Shoppers responded to the deals and bargains they found online, comScore Chairman Gian Fulgoni said. Whether they continue to do so in December isn't yet clear.
"While we anticipate that there will be more billion-dollar spending days ahead as we get deeper into the season, only time will tell if overall consumer online spending remains at the elevated levels we've seen thus far," he said in a statement..
The Cyber Monday figures come a day after a report showed American's confidence in the economy rose to a five-month high in November.
Another positive sign Wednesday: the Dow Jones industrial average jumped more than 2%, enough to erase nearly two weeks of losses. Analysts said investors concluded that a stronger job market would support higher stock prices.
According to ShopperTrak figures, revenue at stores in shopping malls was flat over the weekend following Thanksgiving, but traffic rose 2.8%.
ComScore said the number of buyers online increased at a slower rate than total spending, up 4% to 9 million. The average shopper spent 12% more, at $114.24 each, according to the data.