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The incoming online shopping tide – scratch that, tsunami – that just swamped traditional brick-and-mortar retailing has changed America's shopping landscape forever.
Not only were online sales records broken on Black Friday and Cyber Monday, but they were also broken on Thanksgiving Day. Meanwhile, brick-and-mortar stores debated even opening on a "family-gathering" day.
While online sales numbers themselves are staggering, the story they tell about changing consumer habits might as well be the last nail in the coffin of left-behind retailers across the country.
Here's what that means for the future of America's already shaky traditional retailers…
This Past Weekend Made History
On Black Friday, in-store traffic fell 1.6%, according to ShopperTrak.
Those shoppers were online, spending 16.9% more this Black Friday than they did last year. Shopify said online sales revenue on Black Friday was more than $1 million per minute. Digital sales, in fact, have been growing at a double-digit rate throughout November.
Adobe, an analytics firm, announced that sales were $1 billion more on Friday than there was the same day a year ago. But still, Adobe expected Cyber Monday to be the biggest shopping day in U.S. history.
They were dead right. Cyber Monday, which got its name in 2005 when the National Retail Federation christened it, registered more than $6.6 billion in sales, notching an impressive 17% increase from last year's one-day record.
The bad news for faltering retailers is that it's not just about the swell of shopping on Thanksgiving Day, or how Black Friday gave way to online armies selling everything to everyone, or even about the attention Cyber Monday gets.
It's about changing consumer habits. It's about technology, and a smart way to shop for discounts, and convenience, and the third wave.
It's even moving beyond desktop computers and tablets. Sure, Cyber Monday's about online sales, but this year was more about mobile than anything else.
Cyber Monday move over… Meet Mobile Monday.
This year, Adobe says 47.4% of site visits originated from mobile devices, with smartphones accounting for 40% of those. Of the 33% of revenue generated through mobile devices, 24.1% came through smartphones. Smartphone sales traffic was up 22.2% year over year.
The increasing use of smartphones only proves that consumers are increasingly tech-savvy, convenience-driven, and on-the-go buyers.
That's not going to change. Don't expect any U-turn in this trend that drives shoppers back to malls or brick-and-mortar stores. The way we all used to shop has been irreversibly changed. Thanksgiving Day proved that families could not only gather together and enjoy a traditional holiday, but they can shop together. They can shop from their dining-room tables, waiting for their pie to come out of the oven, if they want.
Brick-and-mortar stores being closed on Thanksgiving Day is only going to drive more consumers online. Adobe reported a record $2.87 billion of sales on Turkey Thursday, up 18.3% from last year. Digital's share of Thanksgiving holiday shopping is increasing every year and already dwarfs in-store sales.
What's driving the online shopping trend (besides faster, cooler, lighter, overall better tablets and smartphones) are the discounts, the convenience, and the experience of online shopping.
About the Author
Shah Gilani is the Event Trading Specialist for Money Map Press. In Zenith Trading Circle Shah reveals the worst companies in the markets - right from his coveted Bankruptcy Almanac - and how readers can trade them over and over again for huge gains.Shah is also the proud founding editor of The Money Zone, where after eight years of development and 11 years of backtesting he has found the edge over stocks, giving his members the opportunity to rake in potential double, triple, or even quadruple-digit profits weekly with just a few quick steps. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.