News

‘Cyber Monday’ on track to set $2B sales record

‘Cyber Monday’ on track to set $2B sales record

SUPER CYBER SALES: Packages ready to ship move along a conveyor belt at the Amazon.com 1.2 million square foot fulfillment center Monday, Nov. 26, 2012, in Phoenix. Americans clicked away on their computers and smartphones for deals on Cyber Monday, which is expected to be the biggest online shopping day in history. Shoppers are expected to spend $1.5 billion on Cyber Monday, up 20 percent from last year, according to research firm comScore. That would not only make it the biggest online shopping day of the year, but the biggest since comScore started tracking shoppers' online buying habits in 2001. Photo: Associated Press/Ross D. Franklin

By Dhanya Skariachan and Phil Wahba

NEW YORK (Reuters) – U.S. online sales are expected to hit $2 billion on “Cyber Monday,” for the first time since the data firm comScore has been tracking such information.

A 20 percent increase is expected to come even after many consumers shopped earlier when retailers started offering their “Cyber Monday” deals on Sunday.

As of 12 p.m. EST, online sales were up 21.4 percent on “Cyber Monday,” according to IBM Digital Analytics Benchmark.

The growth is not just a boon for online retailer Amazon.com Inc. Bricks-and- mortar chains that have successfully integrated their e-commerce and in-store businesses also stand to gain from the online growth.

Wal-Mart Stores Inc, Target Corp, Toys R Us, Macy’s Inc, J.C. Penney Co Inc and Best Buy Co Inc were among the brick-and-mortar chains that started their online deals early.

“All of them are behind Amazon, but some are starting to catch up,” said Edward Jones analyst Brian Yarbrough.

“Cyber Monday” is the busiest day of the year for online sales and follows the Thanksgiving weekend that kicks off the peak holiday shopping season.

To compete with each other and Amazon, many U.S. retailers began offering some of the season’s best online deals, which were traditionally reserved for the Monday after Thanksgiving, several days ago.

That helped overall online sales from Thanksgiving through Sunday rise 14.5 percent in 2013 over the same period last year, data from IBM showed.

“The earlier offering of deals online may weigh on Cyber Monday and, interestingly, some retailers are offering a worse deal on Cyber Monday than they had over the earlier period,” said Nomura analyst Simeon Siegel.

U.S. shoppers spent almost 3 percent less than they did a year earlier during the Thanksgiving weekend, according to the National Retail Federation data. But online sales rose 17.3 percent on Thanksgiving and Black Friday, outpacing sales growth at brick-and-mortar stores, data from comScore Inc showed.

The S&P Retail Index was down 0.4 percent Monday afternoon.

Recent Headlines

in Entertainment

This weekend in entertainment history

beatles

A look back on some of Hollywood's most memorable moments.

in Entertainment

TLC cancels ‘Honey Boo Boo’

honeybooboo

The hit reality TV show is off the air after allegations family matriarch Mama June is dating a convicted sex offender.

in Entertainment

Christian Bale to play Steve Jobs in new biopic

bale

The "Dark Knight" star will portray the late Apple Computer co-founder.

in Entertainment, Viral Videos

Zack Galifianakis interviews Brad Pitt on ‘Between Two Ferns’

twoferns

The comic gets in some good digs at the "Fury" star in this hilariously awkward interview that's crashed by Louis C.K.

in Entertainment

‘Breaking Bad’ star: ‘Florida mom messed it up for everyone’

aaronpaul

"Breaking Bad" star Aaron Paul has blasted bosses at Toys 'R' Us, and started his own petition to get the action figures back on store shelves.