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How does $846 million sound?
Cyber Monday is thought by some to be an indicator of the holiday shopping season to come. This day happened to be the second highest online spending day on record. According to comScore, this gain was driven by a 22-percent increase in the number of buyers, while the average dollars spent per buyer declined by 5 percent versus year ago.
The increase in traffic represents approximately 2 million buyers half of whom did their shopping at the office. Sinners.
Traffic on BestBuy.com increased by 131% (average daily unique traffic during the month of November 2008 compared to December 1, 2008). The site was 6th of all online retailers unique traffic measured by comScore. Buy.com, not listed on comScore’s Top 20 list of online retailers, reported that it set a company sales record on Black Friday, which was then broken again on Cyber Monday. Both days realized about 40% greater revenues. Prior to Black Friday, Buy.com announced that shoppers using PayPal to make purchases on Buy.com would receive up to $20 off purchases in addition to free shipping.
So, what was once the 12th biggest online shopping day of the year once thought to be merely an overhyped marketing whimsy is now #1. And with unnecessary tragedies occurring year after year on Black Friday, Cyber Monday revenues should continue to uptrend.
BY FOOT. ShopperTrak.com, which analyses the movement of shoppers in retail environments, reported a slight retail sales increase while posting a rather large drop in total U.S. foot traffic for the Black Friday weekend. The company’s National Retail Sales Estimate (NRSE) and Retail Traffic Index (SRTI) showed a 0.9 percent increase and 19.3 percent decrease respectively for the three-day period as compared to 2007.
CostCo Wholesale Corporation reported its November sales results (for the four-week period ended November 30, 2008) today. Sales in the U.S. were down 2% while International sales were down 15% resulting in an aggregate decline of 5%. More detailed results provided by Bob Nelson via a pre-recorded telephone message suggested that the negative impact of gas deflation and unfavorable foreign exchange rates were to blame for the negative results. International sales comparisons (Nov 2007 vs. Nov 2008) were actually up 6.5% based on local currencies, but when converted to US$ resulted in the 15% detriment.
Nelson also added that “…foods, fresh foods, and consumables [remained favorable] while our non-foods business continues to be down from last year.” Gasoline alone negatively impacted comparable sales by 3.7%. Price per gallon of gas in November 2007 was $3.01 versus $2.02 per gallon in November 2008.
The “bright spot” in November for non-foods is TV sales, which result from an increase in unit sales of approximately 50%. After shopping at CostCo myself on Black Friday, every check out line included someone buying a new TV…and an oversized tub of whipping cream (don’t ask, don’t tell). There were even a couple of customers hauling two out the door.
Unlike the numbers reported by ShopperTrak.com, CostCo’s average transaction in November was down 7.5% (including gas and foreign exchange effects). However, warehouse traffic is up 2.8% (year-over-year) and up 2.5% from October 2008. Goes to show how relatively recession proof CostCo’s product mix may be.
Looks like you’ve got a new plan for 2009. Buy a new Acer laptop
Popularity: 7% [?]
This year, Black Friday sales were better than anyone expected not to mention better than last year. According to a press release from comScore, a leader in measuring the digital world, spending on Thanksgiving was up 6%, or $16 million…and up 1%, or $3 million, for Black Friday. Based on the information tracked by comScore, Cyber Monday has been within a few percentage points of the final holiday season growth rate during the past few years.
“With so much volatility right now in the variables that influence consumer spending, predicting where this online holiday season will end up has been far more challenging than in previous years,” said comScore chairman, Gian Fulgoni. “That said, Cyber Monday may well prove to be an important indicator of whether the decline in spending that we’ve seen during the first few weeks of the online holiday season will continue for the balance of the year.”
A Shop.org survey conducted by BIGresearch found that 55.8% of workers with Internet access, or 72.8 million people, will shop for holiday gifts from work. The trend of employees with internet access shopping from the office has continued to increase: in 2005, only 44.7 percent said they shopped online from work.
I’ll be joining the fun. We’ve already picked out the perfect stocking stuffer for me our son: Kung Fu Panda 2-Pack with Secrets of the Furious Five DVD
The Hot Spots. Last year, I took advantage of deals on both Black Friday and Cyber Monday. In 2007, BestBuy.com experienced the most growth of any of the Top 10 online retailers in 2007. That list includes:
Amazon.com
Dell.com
Yahoo.com
Walmart.com
JCPenney.com
Ticketmaster.com
Apple.com
VictoriasSecret.com
BestBuy.com
CircuitCity.com
Amazon.com is at the top of the list because of the variety of products it offers. But like last year, shoppers will likely hunt down electronics deals like a new mobile phone — there’s the new BlackBerry Bold
Buyer Beware. Greater online traffic can also mean greater opportunities for thieves. Taking precautionary steps is obviously a necessity. Avoid using public computers, and try to resist using public WiFi. Shop from the websites you’re used to, and make sure the domain is legit (i.e., CircuitCity.com not CircuitCiti.com). Stick with credit cards rather than using debit cards — don’t give thieves a direct link to your bank account. Don’t use your usual passwords; pick something unique for your Cyber Monday purchases. And, of course, update your firewall, anti-virus and anti-spyware software.
And don’t forget, Cyber Monday is only the beginning of the holiday shopping season. So, stay on your toes…and happy shopping!
Popularity: 8% [?]
“This is about much more than just Detroit. It’s about saving the U.S. economy from a catastrophic collapse.”
These were the words out of Rick Wagoner‘s mouth when addressing the Senate Banking Committee (SBC) tonight. It was based on this thought that my initial [ignorant] stance was to give these guys the money with some conditions primarily to preserve jobs that would otherwise be eliminated if these companies go down the drain. After listening to about 2 hours of this hearing, I was reminded of how companies tend to dance around pressing and pertinent issues. When asking for $25 billion, it’s probably a good idea to have some answers.
These companies are bleeding money. That was plainly evident after hearing about the billions of dollars per month (about $3B or so if I heard correctly) spent by each of these companies. And when the executive panel was questioned about the seemingly arbitrary $25 BILLION need, the responses were less then erudite. One of the SBC members (I forget which) immediately jumped on that by reminding the execs of their position in the company suggesting they should know these things…how they arrived at that figure. In defense of the executive panel, there were definitely a few questions posed by the SBC that were a little too detail-oriented.
Finally, Christopher Dodd (D-SEN) brought up executive compensation and accountability. And that sucked the remaining wind out of the auto execs’ sails. At that point, it almost didn’t matter if they offered to work for free. The SBC as a whole was quite skeptical toward the strategy of the companies suggesting they’d be back for more money. But after something like 4 hours of questioning, the execs were on the defensive.
What about the alternative? Yesterday in the New York Times, Andrew Ross Sorkin recounted prepackaged bankruptcy, which provide some (for the lack of a better word) tactless options for the automakers.
Bankruptcy would give G.M. enormous leverage with its debt holders — and, perhaps more important, with the U.A.W., whose gold-plated benefits are one reason G.M. is no longer competitive. A bankruptcy filing would also give G.M. the cover to close plants, rid itself of unprofitable brands and shed dealerships. In fact, unless G.M. files for bankruptcy, state laws would make it prohibitively expensive to shut dealerships.
Tactless. But probably necessary.
Popularity: 9% [?]
If you’re looking for a straight forward, no nonsense TV…this is it. I’m an “open box” junkie. So when I noticed the price on this TV, I thought for sure it was included in that category. But the Toshiba 37AV500U
Toshiba 37AV500U: not just a pretty face
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Before purchasing a TV, I like to see them in action…side by side…mano a mano. I compared this one to a 37″ Regza and a 37″ LG (both also new). The Regza was about $100 more and the only difference I could find was an extra HDMI slot. The LG was also impressive, but it was almost $300 more.
Aside from being aesthetically pleasing with its glossy black thin bezel, the Toshiba’s picture is sharp…crisp. Black screens are black instead of gray. And you’d never know it was only 720p without reading it on the specs first. But given that it’s only 37 inches, the resolution is sufficient. So far, I’ve watched everything from CNBC (moving tickers) to movies to San Antonio Spurs games…all in HD. Videophiles worried about response times and lag commonly associated with LCDs will be pleased (I’m using the HDMI connection). And the SD channels actually come through really nice compared to other HDTVs. Finally, the SoundStrip speakers actually provide clear and rich sound up to a certain volume. I expected it to sound like an alarm clock. But for a home theater setup, you’ll want to add speakers.
I’d rate this TV is a solid 8.0 out of 10.0. What the 37AV500U does lack in features, it definitely makes up for in picture quality and overall value! Like I said…this TV is easy to use, easy to hook up, and easy on the eyes!
Popularity: 43% [?]
Are you kidding me? Apparently I’m a little behind the curve on this news. Last night, my DIRECTV DVR list included a message regarding the recording of Pay Per View movies to my DVR. The message reads as follows:
Effective April 15, 2008, DVR recordings of PPV movies will be available for 24 hours of unlimited viewing after purchase. Major movie studios have required that satellite and cable providers alike may no longer allow their customers to view these recordings for longer than 24 hours. During the 24 hour viewing period, you will continue to enjoy all of your DVR features such as pause and rewind.
Um. Why on earth would anyone purchase a movie and record it to their DVR when in the same timeframe, they could hit up Blockbuster Online or Netflix for a movie…and then keep that movie for days without late fees? Luckily the movies I have stored on my DVR already won’t be deleted.
I can see it now. No more fast forwarding through commercials.
Popularity: 39% [?]
Bear Stearns president and CEO, Alan Schwartz, was recently noted as saying that the “liquidity position [of the securities firm] has not changed at all” on a recent CNBC appearance. The reaction to the rumors about the firm’s liquidity and ability to fund its business came only a day after the resignation of Bear Stearns Director, Henry S. Bienen.
The stock has been down by over 40% today, and it’s taking everyone down with it. During the conference call, one Bear Stearns executive discussed the reaction of its clients to the rumors.
A lot of people acted to protect themselves from the possibility of the rumors being true. The concerns on the part of counterparties, on the part of customers and lenders got to the point where a lot of people wanted to get cash out.
The Bear Stearns Companies, Inc. Conference Call
More than half the value of Bear Stearns, about $8.9 billion, was wiped out over the last 3 months…about $6 billion in the blink of an eye today. The market obviously reacting to the New York Fed bailout.
JPMorgan is providing secured funding to Bear Stearns for 28 days, and those loans will in essence be insured by the Federal Reserve. Schwartz said this move will help “restore confidence in us in the marketplace, strengthen our liquidity and allow us to continue normal operations.” Many market experts believe Bear Stearns will be purchased within the next few days either by JPMorgan or some other bank…or by a foreign entity, which is least likely.
Jimmy Eats Wad
James Cayne, Bear Stearns Chairman, blew his wad of cash (on paper) after today’s tumble. Check this out.
| Date | $ Per Share | Value |
|---|---|---|
| Jan 12, 2007 | $171.51 | $992 million |
| March 14, 2008 | $30.00 | $166 million |
Popularity: 30% [?]
$100 Oil! C’mon…say it with me! “$100 OIL!!!” The crude (not refined) stuff ended above $100 per barrel yesterday for the first time ever. $100.10 to be exact. It’s up about 4% so far this year. Looks like Trump put that call into OPEC! “Get those prices down…and I mean now!” (6:01). Stockpile speculation on crude oil for March delivery dropped to $99.11 per barrel in after-hours electronic trading on the New York Mercantile Exchange and traded at $99.30 at 1:50 p.m. in Singapore.
Not Jake Shimabukuro
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Eat your heart out, Don Ho (R.I.P.). Jake Shimabukuro is better than you at the ukulele. Be sure to check out his recent performance on Conan O’Brien. It’s like Monte Montgomery at chipmunk speed. Pretty cool!
Lindsay Lohan’s mom, Dina, is ok with “LL”s nude photo shoot. The photos in New York Magazine are photographer Bert Stein’s recreation of his legendary 1962 nude shoot with Marilyn Monroe titled “The Last Sitting”. What a relief! I was waiting for Mrs. Lohan’s blessing before I checked those out. And by “those”, I mean her photos. If you’re at work, you might want to wait until you get home to see “those”.
Shaquille O’Neal will return to the hardwood tonight against his old crew, the Lakers. Shaq wasted no time talking Shmaq…calling out everyone from Kobe (of course) to Phil Jackson to Kareem Abdul-Jabbar. Shaq questioned Kareem’s lack of conversation and attention with regard to his place in the Lakers organization. Hey, Shaq. Hakim (see Game of Death) owns Kazaam.
Popularity: 13% [?]
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