Cyber Monday sales jump 17 percent, on pace for record
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[November 28, 2017]
By Nandita Bose and Sruthi Ramakrishnan
(Reuters) - Cyber Monday was on track to
become the biggest-ever internet shopping day in the United States as
people snapped up bargains on toys and electronics, with many more
buying from their phones.
The shopping event is expected to generate $6.6 billion in sales, up
from $5.6 billion a year ago, according to Adobe Analytics, which
measured 80 percent of all online transactions from the top 100 U.S. web
retailers. As of 10:00 p.m. EST (03:00 GMT), revenue from smartphones
was $1.12 billion.
The buying frenzy has gone on for the better part of a week. Amazon.com
Inc <AMZN.O> said it broke sales records this weekend and was on pace to
do so on Cyber Monday. Thanksgiving and Black Friday, during which
shoppers spent $7.9 billion, according to Adobe, had also generated
record online sales.
The world's biggest shopping event was China's Singles' Day earlier this
month, in which Alibaba Group Holding Ltd <BABA.N> reported sales of
Online sales have brightened the overall outlook for traditional U.S.
retailers that have expanded beyond brick-and-mortar. However, the
availability of deals and promotions for weeks hurt foot traffic at
The lengthening of the holiday shopping season has had another effect,
too: many Cyber Monday promotions were run of the mill.
"It's not as exciting as what the marketing makes it out to be," said
Guru Hariharan, CEO of e-commerce software firm Boomerang Commerce, in
Mountain View, California. "The majority of these 'deals' have been
around since early November, or late October."
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Packages emblazoned with Amazon logos travel along a conveyor belt
inside of an Amazon fulfillment center in Robbinsville, New Jersey,
U.S., November 27, 2017. REUTERS/Lucas Jackson
Amazon came under criticism this year for marketing discounts off list prices it
infrequently charges, so shoppers perceive their purchases to be bargains - an
allegation it has denied.
According to an analysis by Boomerang Commerce, online retailers including
Amazon were offering bigger savings for more of their most popular toys this
year than last. Amazon said it sold 3 million toys halfway through Cyber Monday.
Top rival Wal-Mart Stores Inc <WMT.N> is within striking distance of matching
Amazon's online prices for the first time, a key milestone in its effort to
regain the "low price leader" title, data gathered for Reuters show.
Amazon shares closed up 0.8 percent, while Wal-Mart and Target Corp <TGT.N>
shares were about flat. J.C. Penney Company Inc <JCP.N> closed up 3 percent, and
Macy's Inc <M.N> closed up 0.7 percent.
(Reporting by Nandita Bose in New York, Sruthi Ramakrishnan in Bengaluru and
Jeffrey Dastin in San Francisco; Editing by Nick Zieminski, Lisa Shumaker and
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