Retailers set sights on record Cyber Monday sales
With consumers already shopping more online, Cyber Monday is expected to bring in record e-commerce sales as retailers’ digital operations face their first major test.
Retailers are on pace to hit $7.8 billion in sales — an 18 percent increase — according to Adobe Analytics, which tracks transactions at most of the top U.S. online retailers.
But online promotions can be fraught if websites can’t keep up with increased traffic. On Friday Walmart, Kohl’s and Lowe’s experienced website meltdowns as consumers flocked to their sites for deals.
Minneapolis-based Target is pouring $7 billion into modernizing its operations and improve online shopping. It joined Amazon, Macy’s and other retailers that began discounting items on Sunday, by promoting “Cyber week” deals.
Richfield-based Best Buy has spent years making its website easier to navigate, and has seen online revenue leap in recent years as the lines continue to blur for shoppers between store visits and online shopping.
Best Buy is once again pairing its Cyber Monday sales with a fundraising effort for St. Jude Children’s Research Hospital. The retailer has raised $60 million since 2013, according to St. Jude.
More than 80 percent of major retailers expect to see more sales this Cyber Monday than last, brand loyalty consultant Robert Passikoff of Brand Keys said.
Best Buy and Target are expected to be beneficiaries of increased traffic on Monday, according to ranking by Brand Keys. Amazon and Walmart will be the top two takers on the list, but Best Buy and Target follow at numbers 3 and 4.
Consumer electronics are often a big seller, along with specialty apparel and jewelry. This year, toys are being promoted for their Cyber Monday deals as retailers try to win new business from the Toys ‘R’ Us bankruptcy.
Last year, an average day during the holiday season produced about $1.1 billion in online sales volume, according to Mastercard SpendingPulse data, which measures total U.S. retail sales across all payment types.
The National Retail Federation estimates 75 million consumers will purchase something on Cyber Monday.
Jackie Crosby • 612-673-7335