(Adds new sales data, analyst and company comments)
By Nandita Bose and Sayantani Ghosh
Nov 28 U.S. online sales gained momentum on
Cyber Monday and are set to surpass initial expectations by
hitting a record $3.39 billion as consumers snapped up deals on
the busiest day of the year for internet shopping.
The revised outlook dismissed fears that a strong jump in
web sales during the Thanksgiving weekend would hurt Cyber
Monday. It also underscored the broader shift to shopping
online, which is making up for slower spending in stores.
Sales on Cyber Monday were expected to finish up 10.2
percent from a year ago at $3.39 billion, compared with an
earlier estimate of $3.36 billion, according to Adobe Digital
As of 12 p.m. EST on Monday - the latest figures available -
sales totaled $1.19 billion. Adobe will release final figures on
The rate of growth on Cyber Monday, however, was slower than
Black Friday and Thanksgiving, when sales grew 21.6 percent and
11.5 percent respectively. This was mainly due to a lower sales
base a year ago for those two days, Adobe said.
Adobe collects the data by measuring 80 percent of all
online transactions from the top 100 U.S. retailers. Of every
$10 spent at the top 500 U.S. retailers, $7.50 goes through the
Adobe Marketing Cloud sales platform.
Amazon.com Inc said it is on pace to have its "best
Cyber Monday in history," and said orders placed on its mobile
app are higher than last year. Wal-Mart Stores Inc said
purchases made on the Wal-Mart app jumped 150 percent this year.
E-commerce retailer Jet.com, recently bought by Wal-Mart for
over $3 billion, attributed the rise in online sales over the
past five days to a return to buying after the distraction of
the Nov. 8 presidential election.
"The U.S. election dominated the news cycle and the time
people spent online and a lot of what we are seeing online is a
condensing of that demand into a shorter time period," said Liza
Landsman, chief marketing officer at Jet.com.
Even with free shipping and site-wide promotions, the number
of deals on Cyber Monday was lower than on Black Friday,
according to data from e-commerce analytics firm Clavis Insight.
On average, brick-and-mortar retailers cut the number of deals
by as much as 4 percent, the data showed.
Target Corp trimmed product offers by 10 percent on
Cyber Monday. Wal-Mart kept the number of online deals similar
to the past four days while Amazon.com was offering four times
as many deals as Wal-Mart.
WINNERS SO FAR
However, a belief that deals will always be available,
strengthened by earlier promotions, took a toll on consumer
spending, which fell 3.5 percent over the Thanksgiving weekend,
according to the National Retail Federation. The NRF stuck to
its forecast for total retail sales to rise 3.6 percent this
holiday season, on the back of strong jobs and wage growth.
Winners for the Thanksgiving weekend so far include
Wal-Mart, Target, Best Buy and Amazon.com as shoppers splurged
on electronics such as ultra-HD TVs and gaming consoles
including Sony's PlayStation 4, analysts said.
Traffic trends were healthy at footwear maker UGG, owned by
Decker's Outdoor Corp, and Gap Inc, the biggest
surprises, Jefferies & Co analysts said in a client note.
J.C. Penney Co Inc and Macy's Inc were among
department stores that had more promotions this year, Deutsche
Bank analysts said.
Apart from electronics, beauty products overall sold well
over the holiday weekend, analysts said, even as handbag sales
(Reporting by Nandita Bose in Chicago, Sayantani Ghosh and
Siddharth Cavale in Bengaluru; Editing by Ted Kerr, Matthew
Lewis and Bill Rigby)