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Lackluster sales in this holiday season have retailers scrambling to wring a few last dollars from procrastinators by slashing prices, extending hours and wooing customers more persistently than last year.
The moves show that retailers’ strategy during this final weekend before Christmas — when about 10% of holiday sales are expected to take place — has become increasingly reliant on the same promotions and marathon hours once unique to the "Black Friday" weekend following Thanksgiving. But the discounts also reveal the pinch stores are in this year as the credit crunch, rising gas prices and winter storms have taken a toll on companies dependent on end-of-year sales.
The tough economy has left aisles more empty this year. Total foot traffic at U.S. retail outlets took an 8.9% dive during the second full week of December, compared with the same period last year, according to an estimate from ShopperTrak RCT Corp., which bases its numbers on a formula that involves an electronic count of shoppers in malls and other retail outlets nationwide.
A bright spot, however, has been online, where aggressive discounting and cut-rate deals on fast shipping have contributed to a surge in spending. From Nov. 1 to Dec. 16, online shoppers spent $23.5 billion, 19% higher than the corresponding days last year, according to comScore Inc., a Reston, Va., market research firm that tracks Web spending and traffic. Videogames, consoles and accessories are the fastest-growing category, more than doubling from the comparable period last year. Furniture, appliances and equipment ranks second, up 63%, while event tickets and consumer electronics are up 29% and 24%, respectively.
Now, a final push is on, both online and in stores. Web retailers continued to hunt for business by cutting shipping charges to seal deals before the pre-Christmas shipping window closes. Shoebuy.com, a Boston-based unit of IAC/InterActive Corp. offered free express shipping until today. Online handbag merchant eBags upgraded purchases made by Wednesday from standard shipping to two-day air-shipping through UPS for no extra cost.
Brick-and-mortar stores, meanwhile, retooled their hours for the weekend, hoping to spark their own shopping flurry. J.C. Penney Co. stores are staying open until midnight tonight and Saturday. Select Macy’s Inc. stores on the East Coast will stay open nonstop throughout the weekend — 107 hours straight for one branch in Queens. And New York-based FAO Schwarz made discounts of 25% to 50% on certain toys. Ed Schmults, the chief executive officer at FAO Schwarz, said that while foot traffic was up, business had not been as booming throughout the season as he hoped.
The National Retail Federation, a trade group, is predicting just 4% in sales growth for 2007, the smallest growth rate in five years. Britt Beemer, chairman of America’s Research Group, paints an even grimmer picture: He lowered his forecast of 2% retail sales growth to 1.8%, his lowest forecast in nearly 10 years.
In the apparel category, men’s clothing has showed modest single-digit growth through the first 20 days of the shopping season, according to MasterCard Spending Pulse, a unit of MasterCard Advisors, which tracks spending of all types. But women’s apparel — which last year constituted three times the sales of men’s — has been a major disappointment, as shoppers have avoided big purchases. Sales were down 5.7% from the same time last year.
Retailers have responded with a flurry of price cuts, but large inventory remains in some stores. One of Gap Inc.’s Old Navy stores in downtown Chicago on Wednesday had piles of festive sweaters marked down to $20 from $36.50. Women’s coats still stuffed the racks, despite being already marked down 50%, and its signature "performance fleece," also half off, was stacked eight shelves high.
The bad tidings for apparel have left some retailers looking for other items to push. At Banana Republic, also owned by Gap, $64 gift sets of its perfumes, body creams and shower creams were marked down 30%. Gold-boxed gift sets of a new line of bath products at Ann Taylor Stores Corp. stores were discounted to $19.50 from $29. At Limited Brands Inc.’s Victoria’s Secret, stores were piled with beauty gift sets, many 40% off.
Meanwhile luxury goods are expected to have a good season this year, and retail consultant Frederick Crawford of AlixPartners predicts "pockets of good news" for high-end retail. For brands like Prada and Gucci, he expects to see 5% to 7% growth.
According to retail surveys, electronics sales were down 0.5% in the three-week period between Nov. 18 and Dec. 9 compared to a year ago, according to Stephen Baker, vice president of industry analysis for market watcher NPD Group. He said consumers in recent years have been delaying purchases until closer to Christmas, which may account for the slowdown.
Indeed, Angela Smith has waited until the last week to make her purchases. A 39-year-old bank employee in Dallas, Ms. Smith said she is waiting for prices to drop further as well as trying to spend less. For her three nephews, ages 12, 8 and 7, she plans to buy remote-controlled cars, which Wal-Mart Stores Inc. initially priced at $59 and has since dropped to $49. "I am going to swing by this weekend and see if they are going to take it down one more time," says Ms. Smith, who was shopping for a co-worker’s present at her local Wal-Mart midweek.
Home-furnishings retailers, fighting the weak housing market, are being particularly aggressive with their promotions this year. At Williams-Sonoma Inc.’s Pottery Barn store on Chicago’s Michigan Avenue, Christmas-tree-shaped candles were discounted 50%, and holiday garlands of fake evergreen branches were 30% off. Wrapped gifts such as silver jewelry boxes, also marked down 30%, were stacked high Wednesday afternoon.
Home-improvement outfits like Lowe’s Cos. Inc. and Home Depot Inc. are destined to be hardest hit, says AlixPartners’ Mr. Crawford. "Consumers are absolutely showing us that they will be delaying discretionary purchases" like gear to remodel a kitchen, he said.
A boom-bust pattern is typical after Thanksgiving’s Black Friday discounts, which encourages a flurry of purchases early but leads to a tapering off in early December, killing shopping momentum. This year the pattern was more pronounced: A double-digit sales surge on Black Friday exceeded retailers’ expectations; but come December, throngs of shoppers didn’t return.
There was one exception, however: online retail. Web merchants have discounted and promoted heavily this season, say industry analysts. Shipping promotions have been particularly popular. Sixty-eight percent of surveyed Web retailers said they are offering express shipping promotions this year, up from 49% last year, according to Scott Silverman, executive director of Shop.org, an online retail trade group and unit of National Retail Federation.
As the boom continues, these companies are becoming increasingly creative to draw customers. This year Ice.com, a Montreal-based Internet jeweler, has rolled out new videos to promote products and free overnight shipping. It has experimented with new marketing tricks such as buying front-page ads on Microsoft Corp.’s MSN and Yahoo Inc.’s Web sites this week. Ice.com even tried to tap influencers to drive word-of-mouth among blogs, magazine mentions and celebrities.

Good article. Sounds like they arent doing so hot.

Hello,

I built a new web site some time ago. And installed Google Analytics. I see I do not get many visitors to my web site. I`ve read a bunch of writing articles and doing stuff, but would like to focus on activities that can really increase my traffic.

Are there any free ways to get more web site traffic? I can work on it a few hours per day. Please suggest what works for you, and how many visitors I should expect.

Thank you!

Do not rely only on search engine traffic. You need to drive traffic to your site. Now there are many, many ways to do this.

First Article Marketing. Many people do not utilize this, and it is extra and it is free. Write some articles on niche topics and have a link back to your site in resource box.

If you become very good at writing, find out which high traffic blogs will accept your content. This way, you can get lots of traffic faster and the best of all, in most cases it will not cost you much.

You can also do blog commenting and drive traffic that way.

Not sure if you heard of Massive Traffic Report but you can learn about 14 strategies that are free, or very cheap and drive LOT’s of traffic that way!

I have a high-traffic adult blog that gets around 40,000 visits by around 20,000 unique visitors each month. Hundreds of people stay on the site longer than an hour. The total number of monthly hits is around 2 million.

I have an Adwords banner, but there really aren’t any relevant sites listed on Adwords because my blog is in a niche industry, so Adwords doesn’t make me any money.

Web sites are interested in advertising. What’s a good way to determine a fair rate for advertising space on my blog?

Any ideas?

Here’s an idea – it’s a bit of a cheat – go to another site that has the same amount of traffic as your (use alexa toolbar for this if you need to) and ask them how much they charge for their advertising!

Another option is to sign up to adult affiliate programs you think you could advertise and put the banners on the site yourself. I used adultfriendfinder’s affiliate program! they’re pretty good because they provide you with banners.

My first time using Y!Answers so here goes:

I would like to know where i could find data, statistics about how implementation of various features in a website affects its traffic and bounce rate.

More detailed: i would like to know what is , on average, the potential gain in traffic of an online shopping web site for certain implemented features: polls, quizzes, personal blogs.

Thank you.

I highly recommend Marketing Sherpa; http://www.marketingsherpa.com/

They have very useful statistics and metric data on what you’re looking for. My suggestions is that you simply start implementing the features you mentioned one by one and measure them with web analytics. Statistics are useful, and should be used as a general guideline. Online shopping is a very unique beast; every industry, every niche and even categories within niches, will always present quite different behaviors and performances, which are highly influenced by demographics, seasonality and other metrics.

At our agency, we are constantly optimizing our client’s websites beyond search. Conversion optimization is a key factor when it comes to shopping websites. Polls, quizzes, blogs, reviews, testimonials, etc, all play a role in it, but don’t always apply to every site.

Make this part of your interactive marketing efforts and you’ll be successful.

I have a website "Joe’s Garage Sale" Selling items like an online virtural garage sale. I have links to GOOGLE ADSENSE and have tried the affiliate programs with no luck (in the financial dept ect.) I need to get more web traffic. What should I do? I am trying to sell off my stuff to survive after a home fire/divorce ect. Needing the income badly. Any help would be appreciated.

Get this book at http://www.chadwilgus.com it will andswer any trafic question you have and much more, hope to take advantage of this info. not every will tell you how to get going with online traffic as they feel it creates competition. There are too many people on the web for anything to have competition. Good Luck

What is the best way to drive organic traffic to your web site so that Yahoo and Google will index the pages? Right now I have done some pay per click but if you are not in their index it is very hard to get activity. Any suggestions for a novice?
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Here is an article "Promote Your Website 4 Free" http://homebizseo.com/Promote_Your_Website_4_Free.html

http://www.webseomasters.com/ Live Web stats provides the traffic of web pages and blogs, a variety of statistics and analytics to help webmasters analyse their traffic. Web Stats provides a wide range of choices on what to display on your Webpage or blog. It’s quick and easy to join Web Stats with our 60 seconds sign-up.

• Countries Visitors
• Your Basic statistics
• Online visitors
• Latest visitors
• Hit Counter
• Flag Counter
• All the Above or any combination of the above (Horizontal or Vertical )
• A Small image icon
• A Configurable hit counter (Select the font style, colour , size, background colour)
• Invisible Web Tracker
You can change the display on your page any time you wish, fast and easy.
Why do webmasters and bloggers have to track their visitors and keep watching their Web Statistics? Tracking the visitors is an essential part of any online business. Learn how many visitors you are getting and have the statistics tracking capability.
Get it free at:

http://www.webseomasters.com/

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Promote Websites, Services & Products on Forums, Blogs & Message Boards Worldwide. Search Engine Optimization. Promote Websites, Products & Services on Forums, Blogs & Message Boards. Advanced Marketing. Gain Web Traffic.

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Using Force.com sites, you can now build your own microsites and landing pages on the Force.com platform. These new pages let you track Web traffic and capture leads more easily than ever. Join us to learn best practices from customers who have increased their Web-to-lead conversion using sites. Well also show you how to use Force.com Labs CMSForce to build Web sites and landing pages in minutes, so you can turn your Web site into an automated lead-capture machine.

Duration : 0:57:19

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