Online sales may see holiday bump

New surveys show that shoppers plan to spend more money online this coming season -- and that's a positive for many retailers.

By Trefis Nov 8, 2011 1:08PM
Retailers may get a bit of cheer this holiday season: More revenue from online sales.

A survey by Shop.org shows that 68% of retailers expect online sales to grow at least 15% or more over last year's holiday season. This survey is in line with another survey by the National Retail Federation that found the average shopper plans to do approximately 36% of his or her shopping online this season, up from 32.7% last year.

Increased online sales, if they come to fruition, will be a positive for many retailers such as Gap (GPS), American Eagle Outfitters (AEO), Urban Outfitters (URBN) and Aeropostale (ARO), whose stock prices are tied to Internet orders.

See full Trefis analysis for Gap


Trefis Break-Up of GAP Stock

Gap, others could benefit significantly


Gap may get some respite from slumping domestic and international sales, as Trefis estimates that almost a quarter of its value comes from online orders and franchise businesses.


Retailers can reap the benefits from increased online sales. Trefis estimates that American Eagle's Internet and catalog orders account for nearly 28% of its stock price and Urban Outfitters' orders constitute 30% of its stock price, compared to about 15% for Aeropostale.


Post continues below.

Promotions key for sales


As all online retailers vie for Internet orders, promotions will play a key role in whether they make the sales or not. Shop.org's survey showed that consumers favor free shipping offers, and most retailers plan on giving them what they want. Nine in 10 retailers are planning to offer free shipping and have even budgeted higher this year than last year for this promotion. They also plan to offer free shipping earlier this year.


Earlier start to promotions


Earlier holiday marketing this year is also expected, with more than half surveyed planning on beginning their promotions by late October. Another 37.2% surveyed said they plan on starting their holiday marketing by mid-November.

 

2Comments
Nov 9, 2011 6:39AM
avatar
Of course, the rising popularity of time-sensitive deals like those offered at Printapons has fueled consumers seemingly insatiable appetite for discounts.
Nov 8, 2011 4:03PM
avatar
This article is about stocks in retail stores online sales. But why someone would buy from one of the retailers mentioned is a mystery to me.  When you can find the same new product on ebay for half the price. Before someone mentions ebays merchandise is stolen, almost all items are purchased by ebay sellers, at huge discounts, store closeouts, auctions etc. The old saying comes to mind, about the people that buy from the big retailers, mentioned in this article. A fool and there money are soon parted. 
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

116
116 rated 1
265
265 rated 2
429
429 rated 3
612
612 rated 4
499
499 rated 5
525
525 rated 6
701
701 rated 7
533
533 rated 8
337
337 rated 9
131
131 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
UPLULTRA PETROLEUM Corp10
COPCONOCOPHILLIPS9
TAT&T Inc9
DVNDEVON ENERGY CORPORATION9
EOGEOG RESOURCES Inc9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.