Market Overview

Wall Street Breaks Down A Record-Setting Cyber Monday

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Wall Street Breaks Down A Record-Setting Cyber Monday

Retail returns to work today fat, happy and ready for a two-week nap after binging on your bank account over the Thanksgiving weekend.

By Adobe Analytics’ latest projections, Americans were on pace to strike $6.59 billion in Cyber Monday spending — a 16.8-percent increase over 2016 that makes it the largest e-commerce day ever.

Cyber Monday rounded out a record-setting holiday weekend for online sales. Small Business Saturday and Sunday broke $5.12 billion for a 10-percent annual increase, while Black Friday sales rose 17 percent to $5.03 billion.

Amazon Is (Still) King

Some retailers did better than others.

In Loop Capital Markets’ assessment of 30 targeted consumer electronics, Amazon.com, Inc. (NASDAQ: AMZN) outpriced Best Buy Co Inc (NYSE: BBY) and Wal-Mart Stores Inc (NYSE: WMT) by an average 3.2 percent and 8.9 percent, respectively.

“Based on our Cyber Monday pricing study, we believe Amazon and Best Buy are best positioned to continue gaining consumer electronics market share during the holiday selling season — a portion of which will likely come at Walmart's expense,” Loop analyst Anthony Chukumba said in a Tuesday note.

E-Boutiques Abstain

From Target Corporation (NYSE: TGT) and Dicks Sporting Goods Inc (NYSE: DKS) to Rite Aid Corporation (NYSE: RAD) and Lowe’s Companies, Inc. (NYSE: LOW), just about everyone partook in post-Thanksgiving sales. But some declined to participate.

Of 27 premium, direct-to-consumer brands analyzed by Loup Ventures, only seven ran Cyber Monday promotions this year. Those who did protected margins and brand exclusivity by offering small product giveaways at particular spending thresholds — an eyepatch from birddogs, an ice pack from YETI Coolers, a bottle opener from Tecovas — rather than slashing prices and increasing product accessibility.

“They want to participate, they want to show up in your inbox, but they don’t want to cheapen the brand with a discount,” Branch Basics CEO Tim Murphy told Loup Ventures.

On-The-Go Shopping Explodes

Those who engaged rode a strong tailwind from technology. The online shopping event began sluggishly in 2005 under the weight of dial-up internet. Broadband eventually simplified the process, and this year, consumers turned to mobile.

The sector effectively capitalized on trends in consumer cell use.

"Retailers are figuring out how to optimize ... for mobile," Mickey Mericle, vice president of Adobe's Marketing and Insights division, told CNBC's "Squawk Alley" Monday. "We're seeing the two come together."

Related Links:
Retail Expert: For Consumer 'There Is No Bad News' But Same Can't Be Said For Retailers
9 Hottest Toys For The 2017 Holidays, Courtesy Of Walmart

Posted-In: Anthony Chukumba Black Friday Cyber MondayAnalyst Color News Events Top Stories Media Best of Benzinga

 

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