Retail CMOs: Black Friday, Cyber Monday Crucial to Holiday Shopping Season
by MarketingCharts staff
Chief marketing officers at leading US retailers estimate that sales on “Black Friday” (November 23 this year) will account for 15% of their total holiday revenue in 2007 and online sales on “Cyber Monday” (the Monday after Thanksgiving) will account for 12% of holiday season internet sales, according to a BDO Seidman study.
The CMOs also project that more than one-fifth (21%) of their holiday sales will take place in the final week before Christmas.
Cyber sales. US retailers say they are spending 15% of their total marketing budget on promoting internet sales this holiday season, but a majority (59%) of retailers say they are not conducting any special promotions to encourage customers to buy online.
Online promotions. Of those offering promotions (39%), a majority are providing reduced prices online (61%), free shipping (58%) and Internet exclusive items (53%). Of those offering free shipping, the average minimum purchase amount to qualify was $43.
Just hype, so far. Just 4% of CMOs report using social-networking sites to market products to consumers.
Deep discounts. Almost three-quarters (73%) of retailer CMOS say discounting and promotions will be more plentiful this holiday season compared with 2006, due to the current credit crunch.
About the study: “The BDO Seidman Retail Compass Survey” is a national telephone survey conducted by Market Measurement, Inc., an independent market research consulting firm. The retailers in the study were among the largest in the country, excluding automotive dealers and restaurants, with revenues of more than $100 million, including 15% of the top 100 based on annual sales revenue. The survey was conducted in October of 2007.