Building from a strong base established during the Thanksgiving holiday weekend, online retailers continue to see growth in both the number of transactions and sales volume, according to statistics tracked by the Chase Paymentech Pulse Index.
“Shoppers have been using their mouse as much as their cars this holiday season,” said Mike Duffy, president and chief executive officer, Chase Paymentech. “Less than two weeks into the holiday shopping season, sales volume for Chase Paymentech Pulse Index merchants this year is more than 30 percent above last year’s total volume. We’re starting seeing a shift of consumer shopping preference during the peak season.”
Early Season Results Are Encouraging
While the Black Friday focus was on brick-and-mortar retail activity, online shopping also experienced a boost. The post-Thanksgiving weekend sales volume for Chase Paymentech Pulse Index merchants rose 38 percent over the same weekend in 2006.
The trend continued as Americans returned to work on Cyber Monday. Sales volume for the 10 retail Web sites tracked by the Chase Paymentech Pulse Index reached $104.8 million on that day.
Earlier this year, Forrester Research principal analyst Sucharita Mulpuru forecasted a 21 percent increase in US online retail sales this holiday season. Initial sales tracked by the Chase Paymentech Pulse Index indicate a strong interest in online deals with a consistent year-over-year increase of between 30 and 35 percent, beginning with Black Friday.
In a guest commentary on the Chase Paymentech Pulse Index Web site ( http://pulse.chasepaymentech.com ), Mulpuru notes that “Online sales for the holiday season are off to an extremely strong start. Retailers on average appear to be up in the strong double-digits for the comparable time period last year; these numbers are even stronger than the growth experienced from 2005 to 2006. The aggressiveness of retailer promotions is certainly a factor, but the overall comfort level that consumers have with the overall shopping experience is likely driving this very promising growth.”
Cyber Monday Not Most Popular 2007 Online Shopping Day
Similar to trends identified in 2006 by the Chase Paymentech Pulse Index, online retailers are seeing the heaviest sales volume so far on Tuesday and Wednesday each week.
Wednesday, Nov. 28 produced $134 million in sales for Indexed merchants, driven by 2.1 million transactions. This sales volume is an all-time high in the three-year history of the Index.
New Holiday Season Expectations Outlined
The upward trend in Chase Paymentech Pulse Index figures continue to mirror 2006 activity, but at a 30 percent growth rate. The Thursday, Nov. 29, Index sales volume dropped to $113.4 million, an increase of 55 percent over last year, but just below the 2006 highest day total. Similar patterns were identified last year, as 2006 performance dropped back to 2005 levels.
“Based on the early season activity, we expect that consumers will continue to leverage the value and convenience of online retailers,” said Duffy. “If previous years’ results are to be used as a barometer, we will see an increase of last-minute shopping taking place from December 18 to 20, as Americans place orders that can be delivered in time for the Christmas holiday.”
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