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Coremetrics Reports Mixed eCommerce Signals in December

Report Shows More Online Shopping, but Less Spending

SAN MATEO, Calif., January 7, 2009 – The online retail sector in general continued to give mixed signals, showing both strengths and weaknesses, over the holiday retail shopping season, according to Coremetrics, the leading provider of online marketing and business optimization solutions.

The online retail sector did well in December with the percentage of completed purchases up by 23 percent compared to November; but down by 2.4 percent compared to December 2007. However, the average number of items per order and average order value fell by 19 percent and 11 percent respectively, compared to November. This means that while more online shopping transactions were completed in December than in November, the average amount of money consumers are spending is down.

“The holiday retail season failed to be the unqualified shopping success many were hoping for,” said John Squire, chief strategy officer for Coremetrics. “These numbers reflect continuing consumer nervousness in the face of a tough economy. We saw more people shopping online, not just because it’s tremendously convenient, but because savvy retailers offered huge incentives like free shipping until very late in the holiday retail season. But those same consumers are only spending
conservatively—no one wants to pay full price.”

Retail Categories
The retail categories that were most successful at converting online visitors into actual buyers were apparel, department stores, home, jewelry and sports apparel. Compared to November 2008:

  • Both the Apparel sector and Department stores saw a 33 percent jump in the number of online sessions in which people completed an order.
  • Home goods retailers saw a 46 percent rise in the number of online sessions in which people completed an order.
  • Jewelry stores reported a 32 percent increase in the number of online sessions in which people completed an order.
  • Sports Apparel and Gear reported by far the biggest jump, with a 66 percent increase in the number of online sessions in which people completed an order.

“Consumers can expect to see more bargains online for a while as retailers try to move the inventory they didn’t sell for the holidays,” added Squire. “And savvy online retailers are going to invest more time and money in understanding where customers are spending, what price points they’re considering and how their peer group is performing so they can better target shoppers with the combination of products and promotions that will convert them into buyers.”

Read the complete Coremetrics December Benchmark Report in PDF.

Source
These findings are based on data from Coremetrics Benchmark™, the industry’s only peer-level benchmarking solution that measures online marketing results, including commerce data, against those of the competition. More than 300 leading U.S. retailers, representing approximately $20 billion in revenues annually, contribute their analytics data to Benchmark. All data is aggregated and anonymized. Abercrombie & Fitch, Alibris, Bloomingdale’s, Coldwater Creek, L’OCCITANE, Macy’s, PETCO and REI are just a few of the participating companies.

About Coremetrics
Coremetrics is the leading provider of online marketing and business optimization solutions. Its products help businesses increase revenues and find and retain their most profitable customers by maximizing every online interaction. More than 1,500 online business sites globally, transacting more than $15 billion this year, use Coremetrics’ Software as a Service (SaaS) to optimize their online marketing. Coremetrics’ solutions encompass advanced online analytics and integrated precision marketing applications, including search engine bid management, email targeting and cross sell recommendations to acquire customers more cost effectively, increase conversion rates, and increase lifetime customer value. Coremetrics is consistently recognized by industry analysts and thought leaders, and in 2008 was named to Deloitte's Technology Fast 50 Program for Silicon Valley Internet, Media, Entertainment and Communications companies. The company is privately held with funding from 3i, Accel Partners, FTVentures and Highland Capital Partners, and is headquartered in San Mateo, California.

To learn more about Coremetrics, visit www.coremetrics.com or call 866-493-2673.

Coremetrics has strongly supported online privacy since its inception. To learn more, visit www.coremetrics.com/privacy.

Media Contacts:
Michela Stribling
Director, Corporate Communications
Tel: (650) 762-1433
Email: mstribling@coremetrics.com

Shelley Risk
Horn Group for Coremetrics
Tel: (415) 905-4037
Email: srisk@horngroup.com

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