While the term "Black Friday" has been around for more than four decades, the term "Cyber Monday" has only been around five years. In a few short years, its impact on the retail community has been undeniable.
While nearly 14 million Americans are still paying off credit card debt from last year's Christmas spending, retailers and the Federal Reserve are praying that Black Friday and Cyber Monday will trigger resurgence in an otherwise troubled economy.
Taking credit for the term Cyber Monday, the National Retail Federation (NRF) discovered a trend of online shopping the Monday after Thanksgiving.
Since 2005, it has become part of the pre-Christmas retail vernacular, and according to some studies has even surpassed Black Friday in terms of popularity.
According to the online research firm Compete, people were more willing to shop on Cyber Monday than Black Friday.
Forty-five percent of those surveyed indicated they would surf the Internet on Cyber Monday while 37 percent stood in line on Black Friday. This contrast marks a stark change in the way cost conscience shoppers are seeking deeper discounts in tough economic times.
"All of my Christmas shopping is done online and most retailers have the same specials online as they have in the store," said Rebecca Springfield on Facebook. "I certainly don't need the headache or hassle of standing in line for hours waiting for a store to open at 4am!"
Between heavy promotion, online discount codes, free gift wrapping and free shipping, consumers are supporting this emerging holiday in tough economic times.
Retailers that have both an online and physical presence are expecting a double digit increase in sales this year as a result of Cyber Monday.
"We found more people are planning on doing Cyber Monday this year rather than Black Friday. That is a trend that's actually been happening the last few years. People see it as easier, more convenient, they don't need to go to the shops and they can do it from the convenience from their own computer," said Debra Miller Arbesman, spokeswoman at Compete.
Thirty percent of those surveyed admitted doing at least half of their holiday shopping online.
Most favored on Black Friday were purchases for higher-priced electronic devices. Up from 2009, the average Black Friday shopper was expected to spend $353 while Cyber Monday shoppers are expected to spend $233.
According to an NRF survey, Internet promotion is becoming more commonplace.
The survey found 88 percent of retailers had a special promotion for Cyber Monday, up from 72 percent just two years ago. Forty-nine percent of retailers have a specific Cyber Monday promotion in mind, up seven percent from last year.
"Cyber Monday has become such a crucial component of the holiday season that many retailers - and shoppers - don't remember the holidays without it. And just when we think that Cyber Monday can't get any bigger, it does," stated Joan Broughton, of Shop.org.
Kathy Grannis of the NRF said both pure play companies - stores without a physical presence like Amazon or Netflix - and traditional brick-and-mortar retailers have taken to Cyber Monday. However, she does not see it impacting Black Friday sales.
"Physical retailers on Black Friday are not competing with Cyber Monday. They are reaching a different kind of shopper. In recent years, retailers began to offer Black Friday online deals to attract shoppers who want to get in on the action and may not want to get to the stores," Grannis said. "We haven't seen anything that would correlate a drop off in Black Friday sales."
In disagreement, Springfield states: "I'm happily shopping from my laptop and wouldn't dare venture out to the stores."
Online flexibility, discount codes, free gift wrapping and free shipping will play heavily into the advantage of Cyber Monday retailers. In these tough economic times, shoppers have become more savvy and cost conscience.
To learn more about Black Friday and Cyber Monday opportunities, please visit www.blackfridayonline.com or www.cybermonday.com. To review Bill Lewis' entire consumer protection series at the Highlands Today, visit www.williamlewis.us.
Source: The Credit Report with Bill Lewis - Highlands Today, an edition of the Tampa Tribune - Media General Group. http://www2.highlandstoday.com/content/2010/nov/28/cyber-monday-rivals-black-friday/columns-welewisjr/
William E. Lewis Jr. is a credit repair expert with Credit Restoration Consultants and host of "The Credit Report with Bill Lewis" on AM 1470 WWNN, a daily forum for business and financial news, politics, economic trends, and cutting edge issues.
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