Mrs. Fields: News- 11.27.12 (00496384).DOC



NEWSWIRES

Dow Jones

UPDATE: Cyber Monday Sales Rise 30%, a Bit Shy of 2011'S Momentum

By Karen Talley

27 November 2012

Cyber Monday sales showed a bit of a slowdown this year, rising 30% compared with last year's 33%--a still-strong number, aided by traditional retailers' push into online selling, according to IBM Smarter Commerce.

From department stores to apparel retailers, growth was significant on a day that traditionally is one of the biggest selling times of the year.

"Early sales results from the Thanksgiving holiday weekend and Cyber Monday confirm that retail sales continue to migrate online, and the spread between offline and online sales growth appears to be widening," said Matt Nemer, retail analyst at Wells Fargo Securities.

Department stores, a group that has put particular energy into building a strong online presence, saw sales grow 43% compared with Cyber Monday 2011.

Apparel sales were also strong, with Cyber Monday numbers showing an increase of 25% over 2011. Health and beauty sales were up 25% year over year, and home goods had a 27% rise, IBM Smarter Commerce said.

"Part of the growth is attributable to the energy that brick-and-mortar retailers have put into building their online operations," said Jay Henderson, strategy director for IBM Smarter Commerce.

However, traditional retailers continue to feel the pressure fro their Web competitors.

Mrs. Fields Famous Brands prepared for the holidays by redesigning its website in mid-November, making it much easier to use and adding graphics, said Neal Courtney, chief operating officer for Mr. Fields. Following the relaunch, sales on Black Friday were up 90%, and 25% on Cyber Monday from a year ago.

"We absolutely felt competition from Web retailers," Mr. Courtney said. "Their online sites were more appealing and easier to navigate."

Inc. (AMZN), the online behemoth, said Cyber Monday was the biggest day ever for worldwide Kindle sales.

IBM Smarter Commerce said the average order value dropped 6.6% to $185.12 as shoppers sought bargains. However, the average number of items per order increased to 8.34 items, up 14% compared with Black Friday.

Visa Inc. (V), which saw a 21% rise in U.S. online purchase volume on Cyber Monday, to $2 billion, also said it saw a decrease in average ticket size, while the number of transactions rose.

This says that "consumers are using the Internet for more than big ticket items, making multiple purchases at various price points," said Wayne Best, chief economist at Visa.

It also shows customers are getting more comfortable using the Internet, Visa said, because they are conducting more transactions at more retailers. Consumers also have a wide variety of mobile devices they can use and are doing so, the company said.

"Consumers can now browse and shop using a variety of mobile devices anytime and anywhere," Mr. Best said.

All told, Visa saw a 20% online rise to $5 billion over the four-days from Black Friday through the following Monday, commonly known as Cyber Monday.

Visa doesn't disclose its number of U.S. card holders.

Shopping momentum hit its peak at 11:25 a.m. EST, IBM Smarter Commerce said. As in 2011, consumer shopping also maintained strong momentum after commuting hours on both the East and West coasts.

On Cyber Monday, more than 18% of consumers used a mobile device to visit a retailer's site, an increase of more than 70% over 2011. Mobile sales reached close to 13%, an increase of more than 96% over 2011.

Apple Inc.'s (AAPL) iPad continued to generate more traffic than any other tablet or smartphone, driving more than 7% of online shopping. This was followed by iPhones at 6.9% and the Android at 4.5%.

Some $1.5 billion in sales was expected to be done online on Cyber Monday, smashing last year's record $1.25 billion, comScore said.

The growth is attributable to a greater online presence by brick and mortar retailers and "people being more comfortable buying online and purchasing larger items," said Andrew Lipsman, a comScore analyst. "It boils down to price convenience and selection."

For Black Friday, $1 billion in online sales took place, the first time the day has reached that threshold and some 26% more than a year ago.

"This is a shade above our expectations and bodes well for holiday season online buying," Mr. Lipsman said.

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