Amazon Soars On Report Of "Unbelievable" Online Sales As Channel Checks Show Store Traffic Down 1%

While bricks and mortar retailers and malls may have decided to put their aggressive discounts on hold for the time being, seemingly content with their market share (losses), online retailers - and one in particular - continue to make staggering gains.

Preliminary reports for Black Friday and Thanksgiving sales point to a promising start to the holiday shopping season, and once again, it is a story of online spending rather than brick and mortar. According to Adobe Analytics, which measures transactions at the largest 100 online retailers, online sales were up by 17.9% yoy for the two-day period. Moreover, according to BofA, there continues to be a shift toward mobile devices, with Commerce marketing firm Criteo finding that 40% of Black Friday online purchases were on mobile phones, up from 29% last year.

Speaking to Bloomberg TV, First Data President Guy Chiarello said the first 3 hours of Cyber Monday were “unbelievably robust,” with 40% more e-commerce traffic than yesterday, 30% more than a year ago.

In contrast, according to Bank of America, most indications suggest that activity was down at stores. ShopperTrak found that store traffic fell by about 1%.

To observe overall shopping trends, BofA said that it will be examining the BAC credit and debit card data for the Thanksgiving and Black Friday period to come up with its own proxy for the health of the beginning of the holiday shopping season. Also on Tuesday, we will hear from the National Retail Federation (NRF) with their sales numbers. As a reminder, the National Retail Federation has been forecasting holiday sales to be up between 3.6 and 4.0% yoy, which means that online spending will have to pick up drastically to offset the decline at traditional retailers. As of the latest Census data in October, core control retail sales (retail sales ex-food services, autos, gasoline and building materials) - which is considered a proxy for holiday sales - is running at a 3.4% yoy pace. The consumer has been spending at a modest pace throughout this year, which is likely to persist into the holiday season, amid healthy levels of consumer confidence and strong wealth effects.

And while we wait for further data, the market is willing to give Amazon the benefit of the doubt, and this morning has sent AMZN stock price over $1,200 for the first time ever, pushing Bezos' net worth further in the "$100 billion club."

Comments

Racer Mon, 11/27/2017 - 09:48 Permalink

If they are unbelievable how much more of a loss are they going to make on that side of the business going by all the previous years!So really they should make fewer sales in order to make fewer losses.... nobody thought of that??

Iconoclast421 Mon, 11/27/2017 - 09:55 Permalink

If they dont make money during normal 365 day retail operation, how the hell are they supposed to make money on cyber monday? Oh, I forgot, profit doesnt matter. This stock goes up every time they extinct another competitor.

Cardinal Fang Mon, 11/27/2017 - 10:02 Permalink

Not a big fan of Amazon, and didn't do any Black Friday, cyber Monday purchasing.

However, one observation is in order. The companies that use self checkout systems and the companies that make self checkout systems are gonna go out of business.

I found myself cursing at two different machines over the weekend. The simplest transactions were fucked up with 'Unexpected item is bagging area' and remove unexpected item from bagging area' and 'Place item in bagging area, replace item in bagging area' even though in both cases, the real world disagreed with the virtual world as sensed by these machines.

They were also accompanied by absent attendants that renders the exercise futile since there was no one to break the cycle of insanity for a few minutes ...

I said to myself, both transactions were simple, but both establishments pissed me off with their 'convenient' self checkout systems.

I actually muttered to myself that this is why these fucking places are gonna get replaced by Amazon. (A large grocery chain and a large home improvement chain)

Their machines suck and they waste people's time and piss them off.

Failures big enough to drive an Amazon delivery truck right through their business model.

MuffDiver69 Mon, 11/27/2017 - 09:58 Permalink

Impressive. If the small 1% decrease holds at the brick and mortar as well...I wonder how they work out people who order online and then pick up at store like me many times..While I’m there I might pick up something else..

NEOSERF Mon, 11/27/2017 - 09:57 Permalink

At some point after WMT throws in the towl, you will see Amazon prices rising 10% a year -- on everything...and the Fed will hand Jeff a medal for being the only entity in the country that can affect inflation

Cautiously Pes… Mon, 11/27/2017 - 10:01 Permalink

I just read a CBO analysis/projection on AMZN and they see nothing but upside potential.  And, hey, it's the CBO....need I say more??The sky is the limit folks!  Get in now while you still can!

HominyTwin Mon, 11/27/2017 - 10:14 Permalink

This after soaring 2% on Friday. Blew right threw my short spread. I couldn't believe it. Why? Because of black friday? But they don't have any "brick and mortar" stores to stage black friday events. Because of Cyber Monday? Deals aren't that good. And their margins from online sales is lackluster. This really has "dipshit retail investor" written all over it. Fucking losers with crummy jobs have to put their orders in the night before, so they put market orders in which is a telltale sign of a fucking loser. That's why the big moves happen at the open.

Panic Mode Mon, 11/27/2017 - 10:15 Permalink

Well, retard local gov charges me outrageous parking fees. Town centers either look like a fucking miserable dump with only coffee shops, saloon and charity shops, or pack with fuckers badly parked with their 4x4s that you can't park next to them.So what do you do, few clicks and everything to my door step. Save my blood pressure, money and time.

Cautiously Pes… Mon, 11/27/2017 - 10:21 Permalink

What is truly amazing is how many muncipalities are willing to give AMZN the keys to their city and control over tax decisions (literally, control) for them to come and build their HQ2.  Scary sh!t....

yaright Mon, 11/27/2017 - 10:46 Permalink

Call me a Sheep but 2 items I was needing dropped by 20% today and YES I clicked why not take advantage "remember key word is needing not wanting" I dont buy just to buy

FoggyWorld Mon, 11/27/2017 - 10:49 Permalink

I used an alternative -Etsy - and while they continue to have the worst search engine going, was able to buy Made in America Christmas presents.  Most of them are truly special and if they would spend money on upgrading the search engine and filtering the products under a heading, they would attract more buyers.Takes way too long and in this world where few have spare time, they hinder their ability to grow.  But be careful because in there are products from all around the world including China so it does take doing your own filtering.Trump ought to put back that labeling that was in place for decades where the country of origin had to be clearly indicated.  Obama removed that and it is killing American manufacturing of consumer goods.

adr Mon, 11/27/2017 - 10:52 Permalink

I always do my best to screw Amazon with purchases. Yeah my little orders hardly do a dent, but if I can cost Amazon over $100 on a $45 purchase, I'll do it.I ordered a $100 product that had a 25% discount and a $30 credit for using my American Express card. Free next day shipping from the California DC to Massachusetts, weight 72lbs.Amazon, winning by losing money on everything they sell. It's the way of the world in 2017.

Md4 Mon, 11/27/2017 - 11:17 Permalink

"Speaking to Bloomberg TV, First Data President Guy Chiarello said the first 3 hours of Cyber Monday were “unbelievably robust,” with 40% more e-commerce traffic than yesterday, 30% more than a year ago."

"Traffic" bee one thang...

"Sales" bees anuddah.

Last of the Mi… Mon, 11/27/2017 - 12:48 Permalink

Hit the local mall Thurs & Fri. Thurs packed, but noticed not that many walking with purchase bags. Friday, you could have shot a shotgun down the thing without hitting anybody. Not a normal Christmas season, I'm afraid. Everything looks like it's going to be in the shitter again this year as far as I can tell, at least at the mall. Online, who knows, but brick and mortars are just screwed. Bought some grand kids things on sale at one of the clothing outlets in the mall and waited in line to check out 20 minutes in a line with 10 people. Clerk was struggling with a 15 year old POS system in a major retailer that was rebooted twice while I was standing there. These guys still haven't got the email about how easy online is. Sell some stores, guys, update your computer systems with the money or you're toast. Customers just don't have to put up with that crap anymore. The decision ultimately ended up being I'm 10 minutes into the line, should I crap out and go online or gamble the clerk/retailer might get they're shit together in a couple more minutes? Brick and mortar retailers just are NOT going to win that fight unless they wake the shit up and start paying attention. I can go to an apple store and buy a $6000 mac and they can ring it out on an ipad walking around. I swear sometimes it looks like some retailers are committing suicide on purpose.