Welcome!

News Feed Item

Early Promotions Drive Record Online Sales for Thanksgiving, Fuels Black Friday Retail Surge, Reports IBM

Mobile Commerce Exceeds 16 Percent of Online Sales, led by the iPad

ARMONK, N.Y., Nov. 24, 2012 /PRNewswire/ -- According to IBM (NYSE: IBM), US shoppers once again took advantage of early promotions this holiday season, driving a 17.4 percent increase in online sales Thanksgiving Day. This increase set the stage for 20.7 percent growth on Black Friday.  The biggest surge came from mobile consumers, with sales reaching 16.3 percent, led by the iPad. This data is the result of cloud-based analytics findings from IBM. 

(Photo:  http://photos.prnewswire.com/prnh/20121124/NY18067 )
(Logo: http://photos.prnewswire.com/prnh/20090416/IBMLOGO )

As part of IBM's Smarter Commerce initiative, the IBM Digital Analytics Benchmark revealed the following trends as of 12:00 am PST:

  • Consumer Spending Increases: Online sales on Thanksgiving grew by 17.4 percent followed by Black Friday where sales increased 20.7 percent over last year.
  • Mobile Shopping: Mobile purchases soared with 24 percent of consumers using a mobile device to visit a retailer's site, up from 14.3 percent in 2011.  Mobile sales exceeded 16 percent, up from 9.8 percent in 2011.   
  • The iPad Factor: The iPad generated more traffic than any other tablet or smartphone, reaching nearly 10 percent of online shopping. This was followed by iPhone at 8.7 percent and Android 5.5 percent. The iPad dominated tablet traffic at 88.3 percent followed by the Barnes and Noble Nook at 3.1 percent, Amazon Kindle at 2.4 percent and the Samsung Galaxy at 1.8 percent.
  • Multiscreen Shopping: Consumers shopped in store, online and on mobile devices simultaneously to get the best bargains. Overall 58 percent of consumers used smartphones compared to 41 percent who used tablets to surf for bargains on Black Friday.
  • The Savvy shopper: While consumers spent more overall, they shopped with greater frequency to take advantage of retailer deals and free shipping.  This led to a drop in average order value by 4.7 percent to $181.22.  In addition, the average number of items per order decreased 12 percent to 5.6. 
  • Social Media Sentiment Index: Shoppers expressed positive consumer sentiment on promotions, shipping and convenience as well as the retailers themselves at a three to one ratio.
  • Social Sales: Shoppers referred from Social Networks such as Facebook, Twitter, LinkedIn and YouTube generated .34 percent of all online sales on Black Friday, a decrease of more than 35 percent from 2011.

"This year's holiday shopper was hungry for great deals and retailers didn't disappoint, rolling out compelling offers which consumers gobbled up on Thanksgiving straight through Black Friday," said Jay Henderson, Strategy Director, IBM Smarter Commerce. "The big winners were chief marketing officers who used technology to deliver customer experiences that not only connected shoppers with personalized deals but did so at the right touchpoint and at precisely the right time and place, whether on their couch or the store floor."

"To remain relevant, retailers must find opportunities to participate in holiday rituals in ways that aid consumers' attainment of the holidays they imagine -- enjoying time with family and shopping when convenient," said Tonya Bradford Assistant Professor, Mendoza School of Business, the University of Notre Dame. "Technology provides more opportunities for retailers to create these experiences for consumers through their mobile computing devices."

Holiday sales growth was led by several industries which include:

  • Department stores continued to offer compelling deals and promotions that drove sales to grow by 16.8 percent over Black Friday 2011.
  • Health and Beauty sales increased 11 percent year over year with consumers once again choosing to pamper themselves this holiday.
  • Home goods maintained its momentum this year, reporting a 28.2 percent increase in sales from Black Friday 2011.
  • Apparel sales were also strong this holiday with Black Friday numbers showing an increase of 17.5 percent over 2011.

Today's news is based on findings from the IBM Digital Analytics Benchmark, the industry's only cloud-based Web analytics platform that tracks more than a million e-commerce transactions a day, analyzing terabytes of raw data from 500 retailers nationwide.

Analysis of public social media content came from the IBM Social Sentiment Index, an advanced analytics and natural language processing tool that analyzes large volumes of social media data to assess public opinions. With this data IBM helps chief marketing officers (CMOs) better understand and respond to the needs of each individual customer, improving sourcing, inventory management, marketing, sales and services programs.

More information on Smarter Commerce can be found at
www.ibm.com/smarterplanet/us/en/smarter_commerce/overview/

IBM Digital Analytics Benchmark Video:
http://www.youtube.com/watch?v=-pUXduuOosk

IBM Black Friday InfoGraphic:
http://www.smartercommerceblog.com/smartermarketing/2012/11/24/2012-ibm-black-friday-cyber-monday-benchmark-results/

To join the conversation, follow hashtags #smartershopping, #smartercommerce and #ibmretail on Twitter

Attachments

1.   Complete IBM 2012 Black Friday Benchmark Report (pdf)

2.   Press FAQ

 

Media Contacts:
Doug Fraim
IBM Media Relations
(617) 501-6376
[email protected]

 

SOURCE IBM Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.