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Takeaway: Department stores crushed it with 70% growth.

Editor's note: Hedgeye Retail Sector Head Brian McGough shares some of his thoughts on Cyber Monday.

#CyberMonday Goes Mobile  - cybmon

Cyber Monday Goes Mobile With 55 Percent Sales Growth, Reports IBM

  • "U.S. shoppers made Cyber Monday the biggest online shopping day in history with a 20.6 percent increase in online sales, according to the latest cloud-based analytics findings from IBM. Mobile sales led the way, exceeding 17 percent of total online sales, an increase of 55.4 percent year-over-year."
  • "Cyber Monday also capped the highest five-day online sales period on record – from Thanksgiving Day through Cyber Monday – which grew 16.5 percent over the same period in 2012."
  • "Department Stores: Cyber Monday total online sales grew by 70.3 percent over 2012, with mobile sales growing 52 percent year-over-year. Average order value was $161.83, up 18.7 percent year-over-year." 
  • "Health and Beauty: Cyber Monday total online sales grew by 65.1 percent over 2012, with mobile sales growing 84 percent year-over-year. Average order value was $60.22, an increase of 6.8 percent year-over-year."
  • "Home Goods: Cyber Monday total online sales grew by 26.5 percent over 2012, with mobile sales growing 40.5 percent year-over-year. Average order value was $182.19, an increase of 9.2 percent year-over-year."
  • "Apparel: Cyber Monday total online sales grew by 22.5 percent over 2012, with mobile sales growing by 58.3 percent year-over-year. Average order value was $102.83, a decrease of 6.9 percent year-over-year."

Takeaway: Some interesting color here by IBM. Department stores crushed it with 70% growth, which is great, because they fell flat on their face as it relates to in-store shopping. Let's also put the dot.com spend into perspective…most stores are coming off an fairly low level of spending online. About 10% of total retail sales originate on-line, but department stores are only about 7% (despite the fact that virtually everything they sell is e-commerce friendly). Big sign of failure to capitalize on an opportunity, but also a big opportunity from here. JC Penney, for example, lost about $500mm in dot.com sales over the past two years (thanks RonJon), or about a third of its internet business. We think it gets it back within 2-3 years.  

#CyberMonday Goes Mobile  - nnn7

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