Weakest sales growth since 2009
The unenthusiastic forecasts for the holiday season have turned out to be accurate, as U.S. retail sales rose 2.7% this holiday season, the smallest increase since 2009. Many factors contributed to the uninspiring sales results: a shortened holiday shopping season, the most promotional retailing environment in five years, sluggish consumer spending, stagnant wage growth, multiple winter storms, and a shift toward big ticket durables. Mobile’s increasing influence is also behind the decrease in store traffic, as consumers increasingly use their mobile devices to research and figure out exactly where they want to go and what they want to buy. This year, the average shopping trip was reduced to a 3-store excursion, down from 5 stores in 2007.
Retailers were at a disadvantage from the start, with the crucial shopping period between Thanksgiving and Christmas being six days shorter this year. The season did show some promise, with online sales on Black Friday and Cyber Monday up from last year 15% and 18%, respectively. Forecasters expected that this compressed holiday shopping window would mean heavy consumer spending later in the season. Late season sales, however, were softer than anticipated.
Online holiday sales fall short of projections
Online holiday spending from November through Christmas on desktop computers increased 10% to $42.8 billion, falling short of the 14% gain in 2012, and the 14% projected again for 2013, according to comScore. Mobile sales accounted for almost 29% of online sales — up 40% over 2012, according to IBM. Mobile traffic this holiday season made up nearly half (48%) of all online traffic, up 28% from a year ago. The trend of consumers browsing on smartphones but buying on tablets continued during the holidays; smartphones drove 21% of all online traffic, compared to tablets at 12%. But when it came to making the purchase, tablets drove 12% of all online sales, more than twice that of smartphones at 5%.
iOS maintained its clear lead over Android devices when it came to Christmas Day sales. As a percentage of total online sales, iOS was more than five times higher than Android driving 23% vs. 4.6% for Android, according to IBM. On average, iOS users spent $94 per order, almost twice what Android users spent during the same time period ($48).
Download the rest of the Research Pulse to find out the most requested gift item, how iPhone and Android shoppers spent differently, and which categories saw the biggest sales gains this holiday season.
Annalect Tools and Insights Research Group
Annalect’s Tools & Insights team provides analytics and consumer insights for our clients through the best use of proprietary tools as well as syndicated research and tools.