This Day On The Street
Continue to site
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

Online Sales Will Save the Holiday Season

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 - Get Report) 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.

Must Read: Ann Taylor 3Q Earnings Beat Estimates, Analyst Says Buy

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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMZN $437.71 0.00%
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
YHOO $39.38 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs