Zacks_Analysts' Blog : Is Everyone Rejoicing Online? - Analyst Blog

Is everyone rejoicing online?

Surely they are, at least for now as the recent data released by ComScore Inc. -- the global leader in measuring the digital world -- sees it.

ComScore reported that holiday retail e-commerce spending for the first 46 days, starting from November 1^st to December 16, 2011, marked a jump of 15% year over year to touch $30.9 billion.

Earlier, ComScore stated that online Black Friday spending increased 26% to $816 million, while Amazon.com Inc. (AMZN) led the pack as it generated 50% more visitors than any other retailer.

Why Online?

Deep discounts, ease of shopping and free shipping are more than enough to lure consumers in the busiest shopping period of the year.

Moreover, an increasing number of consumers are using smartphones and tablets to purchase items. Thus, retailers like Macy’s Inc. (M), Aeropostale Inc. (ARO), J C Penney Company Inc. (JCP) and many more have incorporated e-commerce platforms to bring in incremental gains.

The technological advancement in marketing, such as ecommerce and online business provides a win-win situation for both the retailers and shoppers, as it enables the companies to generate additional sales while broadening the company’s existing customer base globally. Moreover, it also enhances the visibility and reputation of the retailer as a global firm offering great fashion and value at the same time. On the other side, shoppers get the benefit of purchasing researched products at the best prices, as they can compare the prices being offered by various companies.

Closing Remarks

With the pre-holiday sprint settling in, retail sales numbers are expected to zoom. However, the advance estimates of U.S. retail and food services sales for November was below the street expectation as it marked an increase of 0.2%.

Further, the ratio of conversion of shoppers to buyers will rest on the continued economic recovery and improvement in the job market. This will boost consumer confidence and increase discretionary spending.