With 25% to 40% of most retailers' sales conducted during the holiday shopping season, 2008 may turn out to be a pretty grim year.
More than a third of shoppers said they've completed their holiday shopping, according to the National Retail Federation.
And, online retail spending declined 4% in the first 28 days of November, according to comScore.
JP Morgan analyst predicted that holiday sales will be down high single-digits.
But as shoppers cut back their spending, they're also looking online for bargains at Amazon, eBay, Wal-Mart.com and Target.com. Nearly half of all respondents to JP Morgan's shopping survey said they plan on shopping at Amazon.
Here's the latest prediction from JP Morgan analyst Imran Khan.
We think overall holiday spending could be down high-single digits to low-double digits Y/Y.
44% of respondents plan to cut their spending this holiday season.
Those who plan to spend less expect to cut their spending by an average
of 41%. Only 12% expect to spend more on holiday shopping this year,
and they plan to up their spend by 51%. People are cutting both value
and quantity: 22% of respondents plan to give less expensive gifts, 22%
plan to give fewer gifts, and 26% expect to do both. We think holiday spending on eCommerce will be roughly flat Y/Y in 2008.
We asked people who shop online whether they expected to spend more
online this holiday season. 30% of online shoppers expect to spend less
online, while 32% plan to spend more, with the remainder, 39%,
expecting their online spend to remain about the same. Amazon emerging as the clear leader in US eCommerce.
Nearly 50% of respondents plan to shop at Amazon.com this holiday
season, and Amazon’s reach is 39% higher than its nearest competitor.
Amazon continues to pull in very high percentages of users earning more
than $100K, with 59% of shoppers in that income category saying they
had shopped there; no other site’s reach among that group was above 33%. Walmart.com and Target.com catching up to large online-only stores.
In ’07, the two largest online-only stores, Amazon and eBay, drew
business from more online shoppers than any other sites we asked about.
For the ’08 holidays, our survey reveals no significant change in
Amazon and eBay’s reach, compared to double-digit increases in the
number of shoppers planning to use Walmart.com and Target.com, the two
biggest sites of brick and mortar stores; the only other site in our
survey with a statistically significant Y/Y increase was Sears.com. Price is the key.
Nearly half of shoppers said price was the #1 factor in choosing an
online store, and 91% ranked it within the top five. Selection ranked
second, and older shoppers were more drawn by familiarity or experience
with a store. Of the options we offered, the least popular one, by a
wide margin, was, “recommendations from friends and relatives.” Younger people tend to shop online more, and use online classifieds more.
Among online shoppers, over 40% of those aged 18-41 expect to do more
than 40% of their holiday shopping online this year. Among those aged
42+, the respective number was 27%. Likewise, 40% of those aged 18-41
reported having bought on a classified site such as Craigslist, vs.
only 21% of those over 42. |
|
|
|
|
|
(Image source: iReporter.tv) |
Founder and CEO of Vator, a media and research firm for entrepreneurs and investors; Managing Director of Vator Health Fund; Co-Founder of Invent Health; Author and award-winning journalist.
All author postsThe company will use the funding to broaden the scope of its AI, including new administrative tasks
Read more...
Steven Loeb
The company will be deploying Qventus’ Perioperative Solution to optimize its robotics program
Read more...
Steven Loeb
There's over $2T in counterfeit goods in the market, and over 70% of consumers have bought them
Read more...
Steven Loeb