RetailNext: Store Sales Down As Digital Lures Shoppers

Bricks-and-mortar focused market researcher RetailNext Inc. reported a 4.7% store sale decrease in the United States on a 5.1% decline in store traffic over the Thanksgiving weekend. However, the company asserted, overall performance of physical stores bettered trends established in the lead-up to the holiday weekend.

Holiday weekend sales trends were 1.5 to 7.5 points above those recorded in the five preceding months, RetailNext stated, and the decline in store traffic was only half of the monthly declines reported earlier in the year.

Sales per shopper gained 0.3% over the holiday weekend, driven mostly by a 3.1% increase in average transaction value, the market research firm said, but conversion slipped slightly by 0.5%, impacted by early Cyber Monday sales promotions starting over the weekend and shopper recognition that holiday discounts will continue. 

Midwest and Northeast regions had the strongest weekend performances as pent up shopping demand from the previous two months helped bring in shoppers, RetailNext maintained.

“The sales and traffic numbers only tell a partial story as retailers with strong digital businesses saw an uptick in the online channels that will positively impact the overall performance of the brand,” said Shelley Kohan, vp/retail consulting at RetailNext. “The weekend continued to demonstrate the emergence and importance of mobile shopping, and shoppers increasingly used digital devices to shop brands, research products, compare pricing and make purchases.”