ShopLocal Releases Multi-Channel Retail Index Figures for September and October
Slow Start to Holiday Shopping could be an Indicator of “Soft” Season
CHICAGO – November 12, 2007 – ShopLocal™, the leader in multi-channel shopping and marketing services, today announced the October 2007 results for the ShopLocal Index, indicating a slow start to the shopping season. Compared to last year, the Index is up 22 percent in September/October, a significant slowdown from the 29 percent increase through the month of August. This is in spite of a 12 percent year-to-year increase in circular promotions by retailers in the September/October period. The ShopLocal Index is the advertising industry’s first market indicator designed to track the influence of the Internet on in-store shopping.
The ShopLocal Index, updated monthly, is based on the online activity of an average of 20 million monthly consumer visits to store promotions that are presented on the sites of 50 major U.S. retailers, including JC Penney, Best Buy, CompUSA, Walgreens and Home Depot. These retailers cover major retail segments such as Computers, Consumer Electronics, Office Supplies, Home Improvement, Department Stores, Mass Merchants, Grocery, Drug and various specialty stores.
October 2007 ShopLocal Index Highlights:
- The Index rose 16 percent for October year-to-year, and was up 23 percent adjusted* for seasonality.
- The slowdown was most noticeable in the Consumer Electronics category which was only up 10 percent year-to-year. This is a potential indication of customers waiting for better deals or lower buying intent.
- The Home and Garden sector was uniquely strong with 75 percent growth year-to-year, likely a result of the unseasonably warm temperatures in most parts of the country.
- Overall promotions are up 12 percent in the September/October period year-to-year.
- As a result of the popularity of downloadable songs, promotions for music CDs have decreased five-to-25 percent at consumer electronics stores. Interestingly, there has been a slight increase in CD promotions at department stores and mass merchants.
“There appears to be a push/pull dynamic right now between retailers and consumers, with retailers increasing the number of promotions but shoppers still reticent to buy until they’re sure they are getting the best prices,” said Vikram Sharma, CEO of ShopLocal. “With the potential for a ‘soft’ season, we expect to see increased promotions and heavy discounts on gift items, especially in consumer electronics such as flat panel TVs, GPS devices and toys.”
The ShopLocal Index includes hundreds of millions of monthly page views, and, initially benchmarked at 100 for January 2006, reached a seasonal peak of 300 in November 2006. The Index has shown strong growth in 2007, increasing 29 percent year-to-year through August, before a slowdown to 22 percent growth in September/October versus the same period last year. * Adjusted for page views with five Sundays in October 2006 and four in October 2007.
NOTE TO EDITORS: Indices available at www.aboutshoplocal.com/index.
About ShopLocal
ShopLocal, the leader in multi-channel shopping services, offers a complete suite of solutions connecting advertisers and consumers online and in-store. The company’s consumer Web site, ShopLocal.com, provides users with choice and control in their shopping experience by offering the most comprehensive selection of timely online and in-store offers on one easy-to-use site. With ShopLocal.com, consumers can find millions of products and up-to-date weekly sales, deals, and coupons for consumer electronics, apparel, groceries and more.
ShopLocal’s customers include Target, Best Buy, Home Depot, CVS and Sears. ShopLocal powers multi-channel shopping for hundreds of newspaper Web sites and other leading local and shopping sites, such as Los Angeles Times, Miami Herald, Arizona Republic, Google and SuperPages.com. ShopLocal is owned by Gannett Co., Inc. (NYSE:GCI), Tribune Company (NYSE:TRB), and The McClatchy Company (NYSE:MNI). For more information, visit www.aboutshoplocal.com.
