Mother’s Day holiday sales forecasts for U.S. small businesses mixed amid challenging economy

WALTHAM, Mass. (Business Wire EON/PRWEB ) April 28, 2008 -- News of economic woes has not completely discouraged U.S. small business owners as they look ahead to Mother’s Day shopping. According to Constant Contact’s 3rd Annual Small Business Mother’s Day Outlook survey*, 55 percent of U.S. small business owners anticipate strong sales this Mother’s Day holiday. This represents a decrease of 18 percentage points from sales expectations in 2007, when 73 percent of U.S. small business owners anticipated strong Mother’s Day shopping season sales. Constant Contact^®, Inc. (NasdaqGM: CTCT) is a leading provider of email marketing and online surveys for small organizations.

Despite reports of curtailed consumer spending, most small businesses recognize the importance of Mother's Day and don't expect consumers to cut these purchases

Many small businesses are seizing this opportunity to connect with the people who already know and trust their business - their current customers. In fact, our survey indicates that a majority of businesses plan to use cost-effective tools like email marketing to help their customers find meaningful Mother's Day gifts.

While U.S. small business owners’ expectations for strong Mother’s Day holiday sales have waned over last year’s survey, many of them are, in fact, predicting higher sales in 2008. According to the survey, 44 percent of U.S. small business owners anticipate Mother’s Day sales in 2008 will be higher than sales last year, while 34 percent anticipate sales to remain the same and 22 percent expect sales will be lower.

More Small Businesses Publicize Mother’s Day Promotions

A notable 74 percent of surveyed U.S. small business owners are planning promotional offers for Mother’s Day. Furthermore, a strong majority (88 percent) plan to reach out to their customers this year with special Mother’s Day email marketing promotions in an effort to capture more business, similar to last year’s 86 percent. Other marketing methods, including online marketing (24 percent), flyers (24 percent), direct mail (23 percent), and TV, radio, or newspaper advertising (21 percent), follow email marketing.

“Despite reports of curtailed consumer spending, most small businesses recognize the importance of Mother’s Day and don’t expect consumers to cut these purchases,” said Gail Goodman, CEO of Constant Contact. “Many small businesses are seizing this opportunity to connect with the people who already know and trust their business - their current customers. In fact, our survey indicates that a majority of businesses plan to use cost-effective tools like email marketing to help their customers find meaningful Mother’s Day gifts.”

Economic Stimulus Payments Unlikely to Boost Sales, Say U.S. Small Business Owners

According to surveyed U.S. small businesses, a majority (62 percent) do not expect the economic stimulus payments, slated to be sent in May to more than 130 million households, to increase sales for their business. This figure is in line with other reports**, that indicate that a majority of consumers will elect to pay bills or buy necessities, rather than other discretionary purchases.

Nevertheless, mothers will be celebrated − according to the survey, mothers can expect to be on the receiving end of traditional Mother’s Day gifts again this year. The most anticipated purchases are flowers (37 percent), followed closely by a meal at a restaurant (25 percent), a salon/spa appointment (21 percent), jewelry (13 percent), and clothing (4 percent). In addition, small businesses report that the majority of their customers (75 percent) typically spend $25-$75 each on Mother’s Day gifts.

U.S. small businesses also continue to expect online sales to play a large role in this year’s Mother’s Day sales as more than half (63 percent) expect an increase in online purchases this year.

Below are sample questions from Constant Contact’s 3rd Annual Mother’s Day Outlook survey. The full results of the survey are available online: http://img.constantcontact.com/docs/pdf/Mothers_day_survey_FINAL.pdf

*The 2008 U.S. Small Business Mother’s Day Outlook survey was conducted through targeted online distribution to U.S. small business owners, who are current customers of Constant Contact, recording results from more than 1,000 respondents. The survey was conducted from March 29, 2008 through April 9, 2008.

**PNC Economic Outlook survey: http://www.pnc.com/eos; H&R Block Survey: http://www.hrblock.com/press/Article.jsp?articleid=1520

About Constant Contact, Inc.

Launched in 1998, Constant Contact, Inc. is a leading provider of email marketing and online survey tools for small organizations, including small businesses, associations, and nonprofits. To learn more, please visit www.constantcontact.com or call (781) 472-8100.

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of our management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Constant Contact's control. Constant Contact's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, the Company's ability to attract new customers and retain existing customers, the Company's dependence on the market for email marketing services for small businesses, nonprofits, and associations and general economic conditions affecting that market, adverse regulatory or legal developments, the Company's ability to continue to promote and maintain our brand in a cost-effective manner, the Company's ability to compete effectively, the continued growth and acceptance of email as a communications tool, the Company's ability to develop and introduce new products or enhancements to existing products, the Company's ability to manage growth, the Company's ability to attract and retain key personnel, the Company's ability to protect its intellectual property and other proprietary rights, and other risks detailed in Constant Contact’s Annual Report on Form 10-K for the year ended December 31, 2007 filed with the Securities Exchange Commission (“SEC”) on March 14, 2008, as well as other documents that may be filed by the Company from time to time with the SEC. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Constant Contact's views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. Constant Contact undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Constant Contact's views as of any date subsequent to the date of this press release.

Constant Contact is a registered trademark and the Constant Contact logo is a trademark of Constant Contact, Inc. All Constant Contact product names and other brand names mentioned herein are trademarks or registered trademarks of Constant Contact, Inc. All other company and product names may be trademarks or service marks of their respective owners.

MULTIMEDIA GALLERY

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