Nov 2008
E-Commerce Holiday Forecast
17/11/08 09:26 Filed in: In the News
Online Retailers “Resilient, Not Immune” to Challenging Holiday Season
-Retailers Using Free Shipping, New Web Features to Hook Shoppers-
Washington, November 5, 2008—Though the holiday season will be challenging across the board, online retailers are expecting more than coal in their stockings. According to results of the 2008 eHoliday Study, conducted by Shopzilla® for Shop.org, more than half of online retailers (56.1%) expect their holiday sales to increase at least fifteen percent over last year. However, the rate of growth is slowing: three-fourths (77.5%) of retailers surveyed last year expected their sales to grow more than 15 percent.
“Online retailers are resilient, but not immune, to the challenges of this holiday season,” said Scott Silverman, Executive Director of Shop.org. “Retailers will be heavily promotional to attract shoppers on a budget, but have also invested in new site features to improve the online buying experience.”
Despite an increase in transportation costs, retailers do not plan to cut back on popular free shipping promotions. This year, the majority of retailers (78%) plan to offer free shipping with conditions* at some point during the holiday season, consistent with last year’s levels. Retailers are compensating for increased shipping costs by renegotiating terms with shipping providers (40.4%), closely managing company headcount (33.3%), and reducing other promotions (15.8%). In addition, one-fifth (21.3%) of retailers say they will require a higher purchase amount for customers to be eligible for free shipping and one in ten (10.6%) will cut back on usage of free shipping with no conditions.
In addition to free shipping promotions, many retailers have rolled out new website features to improve the customer experience. Features like improved site search, which 42.9 percent of retailers added or improved since last holiday season, will help customers navigate sites more easily. Other features like product video (42.6%) and customer reviews (32.7%) can give shoppers more information to make buying decisions. For price-focused shoppers, retailers have added and enhanced both clearance sale pages (27.1%) and featured sale pages (31.3%). In addition, retailers continue to experiment with social networking as nearly one-fourth (25.0%) of online retailers added a Facebook page this year.
As in previous years, consumers acknowledge that 24-hour shopping convenience is one of the main reasons why they choose to buy online (58.6% this year vs. 58.5% last year). Shoppers’ other top reasons for buying online instead of in stores include not wanting to fight crowds (41.1%), easy price comparisons (36.4%), and free shipping (33.3%). Also, nearly one in four shoppers (23.1%) says they are spending more online due to high gas prices, more than double the number which said the same last year (9.0%).
Consumers who plan to spend less online this year seem to be reacting to their economic circumstances, not to previous online experiences. According to the survey, one in five shoppers (20.1%) says they simply have less money to spend this year for the holidays, while 10.6 percent cited a poor economy as a factor. One in ten (11.0%) plans to spend less online this year due to high shipping charges.
“As budget-focused consumers begin holiday shopping, many are starting on the web to look for gift ideas and research products,” said Helen Malani, Shopzilla’s Online Shopping Expert. “Whether they make those holiday purchases online or in stores, the Internet will have a tremendous influence on holiday sales this year.”
With the Internet becoming more of a mainstay in the retail landscape, many retailers will be using their storefronts to promote company websites this holiday season. According to the survey, three-fourths (74.3%) of multichannel retailers will offer email registration in stores for customers who don’t yet subscribe. Nearly as many (71.4%) will advertise websites in stores and more than half (51.4%) offer the ability for store associates to place an online order for customers.
About the Study
The eHoliday Study, now in its seventh year, provides an authoritative snapshot of the holiday activities of both large and small online retailers, many of which have been in business for at least nine years, and also includes the sentiments of online holiday shoppers. The Study, conducted by BizRate Research, a Shopzilla company, for Shop.org, surveyed 2,040 online buyers (defined as anyone who has made an online purchase in the last twelve months) from September 29-October 3, 2008 and 60 online retailers from October 1-20, 2008.
About Shopzilla
Shopzilla.com is the largest, easiest-to-use and most comprehensive shopping search site on the Web. With an index of millions of products from thousands of stores, Shopzilla empowers shoppers to instantly find virtually anything on sale from anyone, anywhere on the Web -- at the best price for their lifestyle. Shopzilla also operates the BizRate research division and consumer feedback network that collects more than one million consumer reviews of stores and products each month. Based in Los Angeles, Shopzilla has sites in the United Kingdom, France and Germany and the company is owned by Scripps Networks Interactive Inc. (NYSE: SNI), which include national lifestyle TV networks such as HGTV, The Food Network, Fine Living and more. For more information, please visit www.shopzilla.com
About Shop.org
Shop.org, a division of the National Retail Federation, is the world's leading membership community for digital retail. Founded in 1996, Shop.org's 700 members include the 10 largest retailers in the U.S. and more than 60 percent of the Internet Retailer Top 100 E-Retailers. It's where the best retail minds come together to gain the insight, knowledge and intelligence to make smarter, more informed decisions in the evolving world of the Internet and multichannel retailing. Shop.org programs and activities include benchmarking research, events and networking communities.
Holiday Forecast
17/11/08 09:22 Filed in: In the News
Holiday Shoppers Planning to Make a Budget and Check it Twice, According to NRF Survey
--40% of Consumers Plan to Start Shopping Before Halloween--
Washington, October 16, 2008 – In the event that retailers needed yet another reminder that this holiday season will be challenging, consumers are happy to oblige. According to NRF’s 2008 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, U.S. consumers plan to spend an average of $832.36 on holiday-related shopping, up a paltry 1.9 percent over last year’s $816.69. This represents the lowest increase in planned consumer spending since the survey began in 2002.
Though shoppers choose to visit stores for different reasons, consumers say one factor will play the biggest role in buying decisions this year: price. According to the survey, 40.0 percent of shoppers say that sales or promotions is the largest factor when determining where to shop, while another 12.6 percent state that everyday low prices are most important. Other consumers rated selection (21.5%) and merchandise quality (13.4%) as the primary factor. Only a handful of consumers said they are making buying decisions based on a convenient location (5.6%) or helpful customer service (5.2%) this year.
“Retailers are going into this holiday season with their eyes wide open, knowing that savings and promotions will be the main incentive for shoppers,” said NRF President and CEO Tracy Mullin. “No one is canceling Christmas because money is tight, but consumers will be sticking to their budgets and looking for good deals when deciding where to spend this holiday season.”
As in previous years, gift giving is the largest component of shoppers’ budgets. This year, the average person will spend $466.13 on gifts for family, $94.52 on friends, $26.70 on co-workers, and $43.50 on other gifts. For the first time in the survey’s history, people say they plan to spend less on gifts for family members ($466.13 in 2008 vs. $469.14 last year). Spending is expected to be particularly weak among young adults, as 18-24 year-olds plan to spend $50 less on gifts than one year ago.
“It might not be easy to pull back on small gifts for a co-worker or a child’s teacher, but consumers feel like their family understands their current situation,” said Phil Rist, Vice President of Strategy for BIGresearch. “Americans might eliminate an extended family gift exchange or buy one big present for all of the kids to compensate for a budget-friendly Christmas this year.”
Consumers’ holiday budgets this year also include spending on decorations ($51.43), greeting cards and postage ($32.43), candy and food ($95.04) and flowers ($22.61). While retailers spend the month of October rolling out holiday merchandise and promotions, consumers are standing by at the ready.
According to the survey, 40.2 percent of consumers will start their holiday shopping before Halloween. This figure is consistent with numbers from previous years and demonstrates that bargain hunters are looking for ways to spread out spending over a period of time.
With sales and promotions the theme of the 2008 holiday season, it’s no surprise that most consumers (69.7%) plan to do some shopping at discount stores. Additionally, more than half of American adults plan to shop at department stores (58.0%), while more than one-third of shoppers plan to shop at clothing (37.3%) and electronics (37.3%) stores.
As the Internet becomes more of a mainstay in the retail landscape, Americans are heading online to compare prices, research retail locations, and look for gift ideas before heading to stores. Although the number of people buying gifts online is expected to remain flat over last year (44.2% in 2008 vs. 44.3% in 2007), shoppers will rely on the Internet more than ever to browse for holiday gifts and research products. According to the survey, the Internet will influence 33.6 percent of holiday purchases, up from 30.2 percent last year and 28.9 percent in 2006.
Though most consumers plan to stick to a budget this holiday season, many are padding it with a little something extra. Knowing that the holidays often abound with good deals, more than half (56.6%) of shoppers are planning to make additional non-gift purchases for themselves or their families this holiday. Some may have even been holding back on personal purchases for the last few months to take advantage of holiday pricing. Shoppers will spend an average of $119.83 on these purchases, up from $106.67 last year.
NRF continues to expect holiday sales to increase 2.2 percent to $470.4 billion. The NRF 2008 Holiday Consumer Intentions and Actions Survey was designed to gauge consumer behavior and shopping trends related to the winter holidays. The survey polled 8,117 consumers and was conducted for NRF by BIGresearch September 30 – October 7, 2008. This was after Congress passed the economic rescue package but before last week’s substantial stock market decline. The consumer poll has a margin of error of plus or minus 1.0 percent.
--40% of Consumers Plan to Start Shopping Before Halloween--
Washington, October 16, 2008 – In the event that retailers needed yet another reminder that this holiday season will be challenging, consumers are happy to oblige. According to NRF’s 2008 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, U.S. consumers plan to spend an average of $832.36 on holiday-related shopping, up a paltry 1.9 percent over last year’s $816.69. This represents the lowest increase in planned consumer spending since the survey began in 2002.
Though shoppers choose to visit stores for different reasons, consumers say one factor will play the biggest role in buying decisions this year: price. According to the survey, 40.0 percent of shoppers say that sales or promotions is the largest factor when determining where to shop, while another 12.6 percent state that everyday low prices are most important. Other consumers rated selection (21.5%) and merchandise quality (13.4%) as the primary factor. Only a handful of consumers said they are making buying decisions based on a convenient location (5.6%) or helpful customer service (5.2%) this year.
“Retailers are going into this holiday season with their eyes wide open, knowing that savings and promotions will be the main incentive for shoppers,” said NRF President and CEO Tracy Mullin. “No one is canceling Christmas because money is tight, but consumers will be sticking to their budgets and looking for good deals when deciding where to spend this holiday season.”
As in previous years, gift giving is the largest component of shoppers’ budgets. This year, the average person will spend $466.13 on gifts for family, $94.52 on friends, $26.70 on co-workers, and $43.50 on other gifts. For the first time in the survey’s history, people say they plan to spend less on gifts for family members ($466.13 in 2008 vs. $469.14 last year). Spending is expected to be particularly weak among young adults, as 18-24 year-olds plan to spend $50 less on gifts than one year ago.
“It might not be easy to pull back on small gifts for a co-worker or a child’s teacher, but consumers feel like their family understands their current situation,” said Phil Rist, Vice President of Strategy for BIGresearch. “Americans might eliminate an extended family gift exchange or buy one big present for all of the kids to compensate for a budget-friendly Christmas this year.”
Consumers’ holiday budgets this year also include spending on decorations ($51.43), greeting cards and postage ($32.43), candy and food ($95.04) and flowers ($22.61). While retailers spend the month of October rolling out holiday merchandise and promotions, consumers are standing by at the ready.
According to the survey, 40.2 percent of consumers will start their holiday shopping before Halloween. This figure is consistent with numbers from previous years and demonstrates that bargain hunters are looking for ways to spread out spending over a period of time.
With sales and promotions the theme of the 2008 holiday season, it’s no surprise that most consumers (69.7%) plan to do some shopping at discount stores. Additionally, more than half of American adults plan to shop at department stores (58.0%), while more than one-third of shoppers plan to shop at clothing (37.3%) and electronics (37.3%) stores.
As the Internet becomes more of a mainstay in the retail landscape, Americans are heading online to compare prices, research retail locations, and look for gift ideas before heading to stores. Although the number of people buying gifts online is expected to remain flat over last year (44.2% in 2008 vs. 44.3% in 2007), shoppers will rely on the Internet more than ever to browse for holiday gifts and research products. According to the survey, the Internet will influence 33.6 percent of holiday purchases, up from 30.2 percent last year and 28.9 percent in 2006.
Though most consumers plan to stick to a budget this holiday season, many are padding it with a little something extra. Knowing that the holidays often abound with good deals, more than half (56.6%) of shoppers are planning to make additional non-gift purchases for themselves or their families this holiday. Some may have even been holding back on personal purchases for the last few months to take advantage of holiday pricing. Shoppers will spend an average of $119.83 on these purchases, up from $106.67 last year.
NRF continues to expect holiday sales to increase 2.2 percent to $470.4 billion. The NRF 2008 Holiday Consumer Intentions and Actions Survey was designed to gauge consumer behavior and shopping trends related to the winter holidays. The survey polled 8,117 consumers and was conducted for NRF by BIGresearch September 30 – October 7, 2008. This was after Congress passed the economic rescue package but before last week’s substantial stock market decline. The consumer poll has a margin of error of plus or minus 1.0 percent.
October Consumer Spending
17/11/08 09:21 Filed in: In the News
Financial Crisis Freezes Consumer Spending in October, According to NRF
Washington, November 14, 2008 - As expected, consumers went into hibernation as the full scope of the financial crisis took hold in October. According to the National Retail Federation, retail industry sales for October (which exclude automobiles, gas stations, and restaurants) decreased 0.5 percent seasonally adjusted from September while increasing 1.3 percent unadjusted year-over-year.*
October retail sales released today by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) decreased 3.3 percent unadjusted over last year and 2.8 percent seasonally adjusted from September. The discrepancy in U.S. Commerce Department and NRF’s retail industry sales numbers is based on major declines in the autos category, where sales dropped 25.9 percent from the same period a year ago and fell 6.2 percent month-to-month.
“Consumers went into hibernation in October while concerns about the economy were at a peak,” said NRF Chief Economist Rosalind Wells. “As economic uncertainty went from bad to worse, shoppers pulled back on everything but the basics to weather the storm.“
Sales were weak across most retail categories as consumers continue to focus on staple purchases. Sales at furniture and home furnishing stores decreased 13.2 percent year-over-year while decreasing 2.5 percent month-to-month. Electronics and appliance stores were down 5.7 percent from October 2007 and decreased 2.3 percent from the prior month. Clothing and clothing accessories stores fell 3.0 percent from the same period a year ago while decreasing 1.4 percent from September.
In spite of the challenging sales environment, there were a few bright spots in October. Health and personal care stores increased a strong 4.2 percent year-over-year and rose 0.4 percent from September. General merchandise stores, which include discounters, were up 3.5 percent from October 2007 but down 0.4 percent from the prior month.
NRF continues to forecast meager holiday sales growth of 2.2 percent and defines the holiday season as retail industry sales in November and December.
Washington, November 14, 2008 - As expected, consumers went into hibernation as the full scope of the financial crisis took hold in October. According to the National Retail Federation, retail industry sales for October (which exclude automobiles, gas stations, and restaurants) decreased 0.5 percent seasonally adjusted from September while increasing 1.3 percent unadjusted year-over-year.*
October retail sales released today by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) decreased 3.3 percent unadjusted over last year and 2.8 percent seasonally adjusted from September. The discrepancy in U.S. Commerce Department and NRF’s retail industry sales numbers is based on major declines in the autos category, where sales dropped 25.9 percent from the same period a year ago and fell 6.2 percent month-to-month.
“Consumers went into hibernation in October while concerns about the economy were at a peak,” said NRF Chief Economist Rosalind Wells. “As economic uncertainty went from bad to worse, shoppers pulled back on everything but the basics to weather the storm.“
Sales were weak across most retail categories as consumers continue to focus on staple purchases. Sales at furniture and home furnishing stores decreased 13.2 percent year-over-year while decreasing 2.5 percent month-to-month. Electronics and appliance stores were down 5.7 percent from October 2007 and decreased 2.3 percent from the prior month. Clothing and clothing accessories stores fell 3.0 percent from the same period a year ago while decreasing 1.4 percent from September.
In spite of the challenging sales environment, there were a few bright spots in October. Health and personal care stores increased a strong 4.2 percent year-over-year and rose 0.4 percent from September. General merchandise stores, which include discounters, were up 3.5 percent from October 2007 but down 0.4 percent from the prior month.
NRF continues to forecast meager holiday sales growth of 2.2 percent and defines the holiday season as retail industry sales in November and December.
Recall for Seattle's Favorite
15/11/08 20:14 Filed in: In the News
Seattle's Favorite Gourmet Cookies & Dessert Co. of Tukwila, WA is recalling Orange Cranberry and Banana Nut Muffin Tops because they contain undeclared milk. People who have an allergy or severe sensitivity to milk run the risk of serious or life threatening allergic reaction if they consume these products.
Orange Cranberry and Banana Nut Muffin Tops were distributed nationwide to coffee shops, espresso stands, and retail outlets.
These products are individually wrapped in clear plastic with a black product card featuring the Seattle's Favorite logo in upper left hand side and contains the product name and ingredient statement. Product may or may not contain an expiration date or best by date. The date is placed on the product at the retail location. These products, regardless of any codes, are subject to this recall.
There have been no illnesses reported to date.
During a routine FDA inspection it was discovered that the ingredient statement did not declare milk.
Consumers are urged to return these products to point of purchase for a refund. For any further concerns or questions please contact Seattle's Favorite at seattlesfavoritecookies.com or 1-866-203-5588.
Cocoa for Santa
11/11/08 09:18 Filed in: Gift Wrap Ideas
What sells better than a canister of hot cocoa mix? A WRAPPED one! Here, a can of hot cocoa mix is topped off with a holiday ornament and candy cane. To wrap it for show-and-sell-results, set the ensemble on a narrow strip of cellophane -- just wide enough to overlap. Bring the cello up and gather it underneath the upper portion of the ornament so that much of the ornament peeks above the wrap. Tie it off with a simple 2-loop bow of ribbon. This makes an excellent party favor, Secret Santa gift, or a nice thank you to the postman, Sunday School teacher, crossing guard at school, janitor, or anyone who deserves a sweet token of the holidays.
The Gingerbread Country Store
11/11/08 08:56 Filed in: Success Scoop
When you need a bit of gift inspiration, take a scenic drive along Route 7 in Vermont. Near Middlebury you’ll find The Gingerbread Country Store, owned by Deb Wilkinson (pictured with her hubby, Alan). Cheerful candy canes adorn the outside, providing just a hint of the fun you’ll find inside the multi-room shop. Shelves are lined with made in Vermont products plus more -- much more -- than you can see in a quick stroll. Great shop -- wonderful people! Visit it if you’re ever in the area.
Taste of Vermont
11/11/08 08:36 Filed in: Gift Tips
Disregard the date on the photo -- I was actually in Vermont in October (cropping is one of those technical things this blog software snags on sometimes). My good friend Deb owns The Gingerbread Country Store on Highway 7 and she was gracious to allow me to take photos of some of her gift baskets. This is one of my favorites -- a wooden old-fashioned milk tote packed with pancake mix, maple syrup, cocoa, and homespun dish towels. Although Deb says most customers forego the container and choose a simple gift parcel (a shipping box), I love the look and the ‘souvenir-sentiments’ of the tote. Deb is a smart cookie for knowing and catering to her customers’ wishes, though, so she packs up their merchandise selections any way they want them. Nice work, Deb!
Made in Vermont
11/11/08 08:08 Filed in: Gift Tips
Made in Vermont is a theme that may not be flashy, but it continues to sell, year after year. The Gingerbread Country Store (Highway 7, Middlebury, Vermont) offers a wide variety of regional food and gifts, and offers gift basket and gift parcel service. Shown here, pancake mix, syrup, maple sugar candies, jams and homespun kitchen towels fill the hand-hewn tree block basket. Due to the cost of the container, customers often opt to have the fine Vermont products packed in a gift box rather than the basket. Samplings of regional products like these are shipped nationwide year ‘round.