Black Friday and Cyber Monday have come and gone, kicking off the 2007 holiday season...apparently in full force. As you are probably aware, Black Friday is the term in the US for retail shopping on the Friday after Thanksgiving and Cyber Monday specifically refers to online shopping on the Monday following Thanksgiving.

These have become milestone shopping days that retailers use as indicators for the health of the holiday shopping season. While they are often referred to as the busiest or even biggest shopping days, they are quite often trumped by other days leading up to Christmas.

Retail, probably more than any other business, seems to live and breath on year-over-year and comparable day sales comparisons. Ask even the smallest retailer you know how they are doing, and without a blink they can probably quote how the day, week, and month are stacking up compared to a year ago. While economic conditions, weather, and countless other variables can greatly impact sales, I have to imagine that most retailers would feel like a high school football team losing their homecoming if sales fell even slightly below the previous year...nothing seems to soften that blow.

What really struck me though this year was hearing reports of malls opening at midnight and other stores opening up earlier than ever before, and I couldn't help but wonder...how sustainable is Black Friday sales growth?

The National Retail Federation reported that traffic was up 4.8% over last year, but average consumer spending was down 3.5% from last year. The NRF projects that holiday sales will rise 4% though, so perhaps it will all be worth it when all the numbers add up after the season has come and gone.

But in the back of my mind, when I start thinking about extra staffing, overtime pay, holiday pay, and perhaps even lower gross margins or even losses on some of the door-buster specials, I have to wonder what the result of net sales is and whether it is really all worth it? How quickly will the point be reached when you can't open any earlier, drive any more store traffic, or offer enough hot deals to justify it all?

Enter Cyber Monday

Based on survey research from Shop.org, this fact isn't lost on retailers. While Black Friday won't be disappearing anytime soon, many retailers are looking to how they can further tap into the online market to drive sales. I'm sure their data includes retailers that are strictly online-based, but seeing how 72.2% of them planned special promotions for Cyber Monday, up from 42.7% from two years ago, online holiday sales look to have a pretty solid future.

And if those numbers don't indicate retailers' interest, perhaps the prime-time TV commercial I watched while writing this does. It was for a very well-known national electronics retailer with over 600 retail stores in the US alone, yet the commercial focused solely on their website.

Perhaps the number that has online retailers already smiling this year though was from the Shop.org survey that revealed that 72 million Americans, over 11 million more than last year, planned to shop online this past Monday. Maybe next year more shoppers will measure the shopping season based on remaining online shipping days than store shopping days, and more retailers will start planning their holiday calendar around SEO.

Source: news.com