December has yet to arrive, but Christmas seems to have come early for many retailers. The run-up to the festive period has seen a surge in spending on the high street, with the Office for National Statistics reporting a 4.3% rise in high street sales in October. But for those selling online, one of the most crucial dates in the calendar is Cyber Monday, on 1 December.
Cyber Monday, coming after Black Friday and the last payday before Christmas, is when online shoppers are expected do the bulk of their buying. Originally a US phenomenon, Cyber Monday has taken off in the UK in the last few years. Currys PC World says it is expecting this year’s Cyber Monday to be its biggest yet and has released a range of deals to make the most of it.
“Mondays are big days for online, with customers using the weekend to browse products before finalising their purchases,” says Jeremy Fennell, e-commerce director for Currys PC World. “Traditionally, Cyber Monday is the biggest.”
eBay is offering 104,000 deals the day before Cyber Monday, on what it calls “Super Sunday”. The company, which has launched its own Christmas shop online, expects Super Sunday – also known as “Sofa Sunday” – to be its busiest shopping day of 2014, with over 7 million people in Britain perusing deals on the site.
“We’re expecting ‘couch cruisers’ – those tuning in to The X Factor on Sunday – to browse for the perfect gift via mobile at the magic hour between 8pm and 9pm, when eBay UK is expected to reach fever pitch,” says Marty Ellis, head of retail customer experience at eBay.
Data firm Experian and e-retail trading association IMRG predict spending on Cyber Monday will reach £649.6m, with visits to retail websites at 145m, up from 115m last year.
However, Cyber Monday’s shopping bonanza is set to be surpassed on the second Monday in December, a date Experian has dubbed “Manic Monday” after the 80s track by The Bangles. Manic Monday is forecast to prompt spending of £676.5m and 151m visits to retail websites, topping last year’s 120m.
Experian puts the growth of Manic Monday down to the popularity of click-and-collect services, as well as the increased consumer trust that deliveries will arrive quicker. “The second Monday in December will see a huge amount of online retail activity this year, potentially at the expense of Cyber Monday,” says Giles Longhurst, Experian’s general manager for consumer insight. “Brands should also be looking to make sure they can offer home delivery as late as possible in the lead up to Christmas.”
However, Boxing Day is still the busiest online shopping day of the year. The divergence in consumer behaviour is most pronounced on the day after Christmas, with almost no footfall and a huge spike in web activity, according to Experian.
Overall, retail sales are set to rise relatively modestly at 3% in December, according to Mintel – in part due to increased caution from homeowners worrying about the prospect of interest rates rises. The research agency predicts high street retailers without an online presence will take a hit this Christmas as more shoppers go online. It expects online sales to jump by around 14% in December, with high street sales up by less than 2%.
The advance of online shopping is in part due to younger consumers embracing it as a fun activity rather than viewing it as chore. Longhurst says: “Online shopping is an important leisure activity for a wide variety of consumer groups, from active middle-income families with teenage children to young singles. These tech-savvy groups are typically early adopters of new technology trends and prolific online shoppers.”
Mintel estimates 2015 will bring more growth for online, with e-commerce sales rising by 14.5% next year and comprising 12.7% of all retail sales – a rise on this year at just over 11%. John Mercer, retail analyst at Mintel, says: “More shoppers will be drawn into online shopping and they will shop more frequently online because it’s just so much easier.”
The convenience provided by click-and-collect (around 17% of internet retail sales will be collected by customers in 2015, according to Mintel) and the ease of shopping on mobile devices is fuelling the emerging trend for last-minute online purchases. Currys PC World is even taking orders for home delivery on Christmas Eve morning for certain postcodes. “People are increasingly comfortable leaving their Christmas shopping later and later,” Longhurst says.
The traditional pre-Christmas panic may even become a thing of the past as retailers continue to hone their services and shoppers start taking a more relaxed approach to the festive season.
“Customers are in the driving seat and pushing retailers for ever higher standards of service and convenience is forming an even greater part of the shopping experience,” says Ellis. “All of which is providing competitive advantage for retailers and the key to success next year.”
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