Online Will Be Biggest Channel of Growth: Cohen

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Nov. 29 (Bloomberg) -- NDP Group Chief Industry Analysts Marshal Cohen discuss the growth of online shopping with Erik Schatzker on Bloomberg Television's "Market Makers." (Source: Bloomberg)

The npd group here on black friday.

More and more consumers are spending more money, had grown up on computers, and are very comfortable with shopping online.

Even the core consumer, the experience consumer, they are happy with shopping online.

Does it matter to the retailer?

If you have a bricks and mortar channel store, and you have an online channel, do you care with the sales go?

You care a lot.

When the consumer go into the store, they tend to buy a lot of product.

Impulse purchases drive holiday business.

The consumer is basically driving the growth.

Would you recognize that they are shopping online, they tend to put the item in the cart, checkout, that is it.

I see.

Being that there in person, that makes you -- impulse purchases are a huge part of it.

You were out there this morning?

Since they were waiting in line.

Since the stores opened at 8:00 p.m., some at 6:00 p.m., we got a different dichotomy of custody.

-- customer.

We had people coming in with their kids in tow.

If they come in at 4:00 in the morning, they only come themselves.

We had families coming for about 5, 6 people deep.

It was interesting, because that meant that more of them shopped.

I do not think that that is healthy.

I think that people should take the day off on big skimming, and wait until friday.

-- on thanksgiving, and wait until friday.

Is it helping retailers?

Yes it is helpful for them, but it is not going to drive sales.

He is about market share protection.

If i am a brick and mortar retailer, why would i allow you on thursday allow you to have untethered sales to the consumer that i am chasing after?

Retailers are saying we must open on third -- thursday because we are competing with the online retailers.

Is that a race to the bottom?

They're going to have to open earlier and earlier every year, and have to swallow a higher fixed cost to offset staying open.

Welcome to the new tradition.

It is the turning point, it has now got over the edge.

Retailers are no longer about putting out great outings -- it ems, it is now about half off the entire store.

They are dealing with the fear that they have to really work hard to overcome.

This is just the beginning of earlier sales, or sale, and it is going to be from november to december, it is going to be all about the sale.

Earlier we had the chief merchandising officer at walmart on, and i asked him how much of their business in the fourth quarter, this weekend?

He refused to answer.

Do you know how important this weekend is to the physical retailer?

They do about 12% to 15% of their holiday business during this weekend.

It is not all that much, which is why they're willing to jumpstart, to get the momentum, to be the first place you think of for the holiday.

They do not want you to go somewhere else so they are willing to put these doorbuster deals and the discounts in place even if it is a loss leader.

Which companies, to the degree that you can tell, thanksgiving was yesterday, we're just a few hours and a black friday, which company's are leading in terms of innovative strategies to the degree possible?

Tally what you have seen so far.

You have to give walmart a lot of credit.

They have said we are going to make sure that all of the issues that you have are going to be resolved.

We're we are going to guarantee price, if you get in line, and the item is gone, we are going to guarantee that you're going to get that item.

Macy's is putting customer service paramount into the mix.

Running ad campaigns to say that if you do not get what you want in one place, we will get it at another location.

Those are the types of things that retailers have to do to compete with what the online offers which is the convenience of shopping.

How often is it that those shaq -- strategies pay off immediately, as opposed to taking a couple of years for people to get used to them?

Take macy's, as you said, putting customer service front and center.

How long will it take for people to see that macy's is actually doing something different?

That is a good point.

It will take time.

Not everybody decided that this was a good idea to go out and shop on big skimming -- thankg sgiving.

As things percolate, and start to spread around, and people talk at work about the deal they got, that is what generates it.

It takes a little bit of effort and momentum to build.

Where are you seeing the lines?

When the source first open.

I saw lines at macy's, walmart, target.

Within an hour, those lines fizzled out, and people would to other locations.

The things that happened with all of these extra hours is that it allowed the consumers to be extremely strategic.

They prioritized.

With the sales being so spread out, and now the sales are all but died -- all day long, and allows them to shop for those deals.

Is not -- that not a bad thing?

Humans are like lemmings, if they see a line, they must say that is good.

A crowd draws a crowd.

They are killing themselves.

They are protecting themselves from losing momentum.

Would you want your restaurant to be closed when everyone is busy impact, no -- and packed, no.

Since when have car dealers talked about black friday is an opportunity?

Now they are.

Everyone is getting in on black friday.

Quick it is infectious.

Maybe it is it -- it is a disease.

Thank you.

This text has been automatically generated. It may not be 100% accurate.


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