This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Online Sales Will Save the Holiday Season

Stocks in this article: AMZN

NEW YORK (TheStreet) - Consumers are using the Web and mobile devices to make retail purchases, as opposed to going to bricks-and-mortar stores. This holiday season, as stores look to lure shoppers with promotions and deals, online sales are likely to be the shining star, in an otherwise tepid selling season.

ShopperTrak revised its holiday traffic expectations lower as a result of new methodology. It now expects 10% fewer shoppers to visit bricks-and-mortar stores in November and December than last year. The retail analytics provider had originally predicted that in-store traffic would decline 1.4% for the holiday season. ShopperTrak had revised its methodology for tracking traffic by expanding its data to include more stores and categories, including dollar stores, home furnishings, sporting goods, office supply, gifts stores and mass merchandise along with the already tracked apparel and accessories, wireless and electronics and enclosed mall sectors, it said in a release.

ShopperTrak specifically expects traffic in electronics and appliance stores to fall by 11.5% compared to 2012, however, retail traffic in apparel and accessories is expected to rise 5%.

Same-store sales growth at the nation's retail chains, i.e. sales growth from retail stores that are open at least one year, is expected to rise just 1.8% for the third-quarter, according to Thomson Reuters. Excluding Wal-Mart (WMT) the biggest retailer, same-store sales are expected to rise 2.5%.

According to the latest report by the Commerce Department released on Friday, U.S. retail e-commerce sales rose 3.6% from the second-quarter, and 17.5% from a year ago earlier to $67 billion. The number is adjusted for seasonal variation but not for price changes, the Commerce Department said. Unadjusted, U.S. retail e-commerce sales totaled $61.4 billion last quarter, up 2.1% from the second quarter 17.3% from a year earlier.

Online sales may still be a small portion of overall retail sales (sales in the third quarter of 2013 accounted for 5.9% of the $1.14 trillion of total retail sales), but the fact is it's growing significantly while stores sales remain mediocre at best.

Meanwhile Amazon (AMZN) the online powerhouse, supported a good portion of U.S. e-commerce sales, as third-quarter revenue jumped 24% to $17 billion. Sales for the fourth-quarter is expected to come in between $23.5 billion and $26.5 billion fueled by the holiday season.

Amazon said earlier this month that it partnered with the U.S. Postal Service to start making Sunday package deliveries.

Retailers often like to talk about their so-called omni-channel strategies, which includes a variety of channel options for consumers to buy including in store, online and mobile selling.

As the fiercely competitive holiday season kicks off with Thanksgiving weekend sales, those retailers that hype-up promotions specifically for online and mobile purchases will be the winners this season.

Written by Laurie Kulikowski in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs