It is clear from this first weekend that an important ingredient in success is still the lure of the discount, and retailers did a good job of communicating their promotions in a variety of ways.
Port Washington, NY (Vocus) November 30, 2010
The NPD Group, Inc., a leading market research company, released the final results of its "The Anatomy of Black Friday & Cyber Monday 2010" study. As the holiday weekend approached, retailers put together their merchandising, marketing, and operational strategies, but did they find the recipe for a successful Thanksgiving weekend? The study’s results indicate they got the ingredients right.
The Black Friday Weekend Retail Recipe for success:
1 -- Doorbusters
Was the extra helping of Doorbusters successful? When asked what motivated their shopping trip almost 36 percent of shoppers from NPD’s online consumer panel said ‘saw an item advertised on sale’ and almost 20 percent said the Doorbusters were ‘too good to pass up.’
2 -- Conversion -- turning Shoppers into Purchasers
Once in the store…brick and mortar, online or otherwise…did they buy? The study’s results point to successful conversion rates for retailers. For all retail, 7 percent more consumers than last year told NPD that when they shopped they also made a purchase.
“It is clear from this first weekend that an important ingredient in success is still the lure of the discount,” said Marshal Cohen, chief industry analyst, The NPD Group, Inc., “and retailers did a good job of communicating their promotions in a variety of ways.”
3 -- Impluse!
“A prized ingredient in any holiday retail recipe is impulse purchasing,” said Cohen. According to NPD’s "Anatomy of Black Friday & Cyber Monday 2010," 35 percent of purchasers bought an item for themselves.
“Consumers’ willingness to purchase for themselves is indicative of a more confident consumer,” noted Cohen. “This not only bodes well for this holiday season but for 2011, too.”
4 -- Add a pinch of destination.
Which of the retail channels were the most shopped this weekend? In first place, mass merchants with 51 percent of shoppers, in second place, national chain stores with 28 percent. Third was online (27 percent) and fourth were electronics stores (18 percent).
5 -- And finish with a generous helping of shoppers that purchase.
The list of retail channels that were the most successful in getting shoppers to make a purchase looks a lot like the list that made up the top destinations to shop.
Mass merchants are in first place, again, with a 74 percent conversion rate. Online is next with a 72 percent conversion rate. In third place is a new addition to the list, toy stores. They had a 69 percent conversion rate and in fourth place, national chains with 64 percent.
“When the actual dollar sales results are posted I think we will in fact see growth, albeit marginal growth,” said Cohen, “We’ve crafted a recipe that works with the primary ingredients being doorbusters and discounts.” So what’s next? “I see a month long Black Friday for consumers.”
Now, how about dessert?
Forty percent of survey respondents told NPD they received an email from a retailer to shop on Cyber Monday. Did those emails pay-off? Twenty-nine percent of consumers said they shopped on Monday and 21 percent said they shopped online.
Were those consumers just looking or did they actually buy? Twelve percent of shoppers said they purchased online, that compares to 11 percent of shoppers who purchased in a store on Cyber Monday.
“This answers the question, How as big is online shopping for Cyber Monday?” asked Cohen “It’s like adding an extra Monday to the retail calendar in November…a little icing on the cake.”
Methodology: "The Anatomy of Black Friday & Cyber Monday 2010" is an online survey of a nationally representative sample of 3146 US consumers ages 18+ assessing what they did on Black Friday/Cyber Monday and why. The results presented here represent preliminary data collected between Friday, November 26 and Tuesday morning November, 30.
About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, visit http://www.npd.com/ , or follow us Twitter at twitter.com/marshalcohen and twitter.com/npdfashion. Become a fan of Marshal Cohen at http://www.facebook.com/npdmarshalcohen and watch more on NPD’s YouTube channel.
The NPD Group, Inc.