Display advertising has been around for sometime now. In fact, modern display advertisements are nothing more than today’s version of early print advertising, which date back to the late 19th and early 20th centuries. Today’s advertisements are still placed according to demographic targeting rather than intent to purchase, and display still simply uses images of a product to entice potential customers. The only real difference between modern display advertisements, is that web-users can now click through the ad to the advertiser:
An article recently posted on WSJ, written by Elizabeth Holmes, illustrates how wise planning on the part of apparel retailers led to strong January sales as they quickly moved clearance items, making room for their spring merchandise. Clothing retailers proved their business savvy over the recent holidays season by keeping their inventories lean and not budging on discounts. Deal hungry consumers were left seeking marked-down products in the new year, said Ken Perkins, president of Retail Metrics Inc. Because inventories were so tight, shoppers gobbled up a majority of discounted goods in the first two weeks of the year then moved directly on to spring-related items which sold for full price.
The smart planning resulted in the largest sales increase in almost two years. And while this may not indicate that consumers are ready to spend on the same level as they were prior to the recession, it does show that retailers and consumers are starting to understand where the market is at. “You can say you are in a challenging position and have a tough set of circumstances surrounding you,” Macy’s Inc. Chief Executive Terry Lundgren said, discussing the current climate, “but at least you can forecast where the future is going to be.”
According to Thomson Reuters and Retail Metrics Inc., retail sales at stores (open at least one year), not including Wal-Mart, rose 3.3% in January 2010, year over year. January proved to be the , “icing on a cake that had already been baked,” said Todd Slater, an analyst for Lazard Capital Markets. To highlight a few companies in particular, Macy’s gained 3.4% in same-store revenue for January mostly due to diminished clearance merchandise, which increased full-priced sales. American Eagle Outfitters Inc. reported an increase of 10% in same-store sales for January while Children’s Place Retail Store Inc. saw 12% gains. Of the high-end retailers, Nordstrom Inc. was at the top with gains of 14%. One of the most surprising success stories of January was Abercrombie & Fitch Co. which reported same-store sales gains of 8% after analysts forecasted an 8% decline.
These January figures point to the overall importance of offering bargains to shoppers. Some of the most positive figures came from discount retailers such as TJX Cos, operator of Marshalls and T.J. Maxx, which posted an increase of 12% in same-store sales. Kohl’s Corp. reported 6.5% gains while Old Navy saw gains of 10%.
via Wall Street Journal
Internetretailer.com released an article this week mentioning the considerable growth seen by online software and service provider Art Technology Group, Inc. In the midst of a shabby economic climate in 2009, ATG achieved record financial results, said president and CEO Bob Burke. In 2009, ATG saw their highest revenue and net income ever, and signed on a number of new clients. Given the current growth of the e-commerce sector, Burke is excited for what will come in 2010.
Regarding their stock, ATG has just revealed plans to sell an additional 25 million shares which would generate around $100 million to be used to increase working capital and for general “corporate purposes,” possibly including acquisitions. In Q4 2009, ATG reported revenue of $49.7 million, up $4.3 million from the year before. Net income in Q4 was $5.2 million compared to $3.5 million a year earlier. 2009 as a whole saw revenue of $179.4 million, up from $164.6 in 2008. Net income in 2009 was $16.8 million vs. $3.8 million the year prior.
To break it down, ATG generates 55% of revenue from ‘recurring services,’ which include operating e-commerce websites and providing live chat and click-to-call services. Thirty percent of ATG revenue is from the licensing of e-commerce software. Their impressive client roster includes online retailers such as Amazon, Sears, Best Buy and Neiman Marcus.
via internetretailer.com
A recent post on Zippycart.com describes how Europeans are increasingly engaging online shopping Out of European countries, The UK experienced the strongest growth online. which now accounts for 10% of British retail spending. The is noteworthy because, while consumers in the U.S. are well accustomed to online shopping, the UK market has only recently began to warm up to online shopping; this is especially impressive given the current economic climate.
Optimistic forecasts predict that online shopping will increase substantially in 2010. The leap in revenue will most likely come from the online shopping craze-hitting countries such as: Spain, France and Poland. With the expected growth for online, it is apparent that European brick-and-mortar stores are in great need of a new game plan. Interestingly, the European Union is considering taking measures to protect brick-and-mortar stores from the overwhelming competition by making it mandatory for online e-tailers to also have a storefront. Many suggest that this could have repurcussions for online mega-stores which operate in Europe (ie., Amazon, etc), as well as existing online-only retailers, but much remains to be seen.
via zippycart
