IBISWorld Forecasts Cyber Monday Sales To Increase 12.4 Percent
Black Friday will only see marginal growth as consumers continue to move away from brick-and-mortar shopping
Cyber Monday will bring the holiday cheer this retail season, increasing 12.4 percent to $1.2 billion, according to industry market research firm IBISWorld. As consumer confidence slowly returns, the company expects Thanksgiving and Cyber Monday sales to see large increases in 2011, while Black Friday will only see marginal growth as consumers continue to move away from brick-and-mortar shopping.
Thanksgiving In 2011, Thanksgiving spending is anticipated to increase 6.5 percent from 2010 to $7.2 billion. More households are expected to participate in the holiday this year as fears of a double-dip recession subside.
Turkey sales will increase 7.8 percent to $3.9 billion due to increased price and volume sold. According to the USDA, the price of a pound of turkey has jumped 7.3 percent (or 11 cents) to $1.57. Other food expenses are also expected to increase, primarily because of the holiday’s higher participation rate and the larger size of the average feast. IBISWorld, the nation's largest publisher of industry market research, expects that side dishes, desserts and other food items will account for $889.8 million this year, up 6.7 percent from last year.
Black Friday Consumers are increasingly shifting away from brick-and-mortar to online shopping and this holiday season highlights precisely this trend. Black Friday is beginning to lose its luster as time-strapped consumers shy away from crowded malls and early morning lines to the convenience of Internet browsing and shopping. In 2010, Black Friday sales totaled $11.8 billion. This year, IBISWorld expects total expenditure to increase by only 1.2 percent to just under $12.0 billion.
Cyber Monday Websites dedicated to the Monday after Thanksgiving, which is popular for its stellar deals on holiday gifts online, popped up in late September and early October in anticipation of the rush. Last year, Cyber Monday sales topped the $1.0 billion mark, increasing 14.1 percent from 2009 totals. In 2011, IBISWorld anticipates further double-digit growth of 12.4 percent to $1.2 billion. The widely available deals coupled with consumers’ increasing propensity to shop online and via their mobile phones, are likely to keep people logging on and checking out.