Here are the trends as of 12:00 a.m. PST this morning, at the official close of the two-day shopping period:

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1 1 U.S. Retail Report 2014 IBM DIGITAL ANALYTICS BENCHMARK

2 2 Summary For the first time, online traffic from mobile devices outpaced traditional PCs on Thanksgiving Day. As IBM predicted within one percent of accuracy, Thanksgiving Day reached a new mobile tipping point with smartphones and tablets accounting for 52.1 percent of all online traffic. Overall Thanksgiving online sales were up 14.3 percent compared to The mobile momentum carried into, which saw a surge in both online and mobile shopping as consumers brought their devices into the store to comparison shop. Overall online sales were up 9.5 percent year-over-year with mobile devices accounting for one-in-four of all online purchases. New York City also retained its title as the top U.S. city for online shopping. The is delivered to clients through the company s Smarter Commerce, which combines innovation from $3.5 billion invested to develop the industry s leading customer engagement platform with expertise working with 8,000 leading global brands and 35,000 commerce engagements. Here are the trends as of 12:00 a.m. PST this morning, at the official close of the two-day shopping period: Historic Mobile Milestone Spurs Online Shopping: Thanksgiving Day mobile traffic accounted for 52.1 percent of all online traffic the first time mobile devices have outpaced their PC counterparts for online browsing. mobile traffic reached 49.6 percent of all online traffic, an increase of 25 percent over last year. mobile sales accounted for 27.9 percent of total online sales, up 28.2 percent over Thanksgiving Eats Into Sales: Thanksgiving Day online sales increased 14.3 percent over 2013, with up 9.5 percent year-over-year. Average order value on Thanksgiving was $125.25, down 1.8 percent over 2013; was $129.37, down 4.4 percent. This trend may indicate that shoppers are becoming more comfortable and digitally savvy in how they use online coupons and rebates to secure the best bargains. online sales were 63.5 percent higher than Thanksgiving Day. This is a decrease from 2013, however, when it was 70 percent higher as Thanksgiving online sales continue to eat into shopping. Top Five U.S. Cities for Online Shopping: New York City claimed the top spot for online shopping followed by Washington, D.C.; Atlanta, GA; Los Angeles, CA; and Chicago, IL. New York City shoppers spent on average $ per order on. Smartphones Browse, Tablets Buy: As the new digital shopping companion for many consumers, smartphones drove 34.7 percent of all online traffic, more than double that of tablets, which accounted for 14.6 percent of all traffic. Yet, when it comes to mobile sales, tablets continue to win the shopping war driving 16 percent of online sales compared to 11.8 percent for smartphones, a difference of 35.5 percent. Tablet users also averaged $ per order compared to $ for smartphone users, a difference of 17.6 percent. ios vs. Android: ios once again led the way in mobile shopping this holiday season, outpacing Android across three key metrics on : o : ios users averaged $ per order compared to $98.07 for Android users, a difference 24.3 percent.

3 3 o Online Traffic: ios traffic accounted for 34.2 percent of total online traffic, more than double that of Android, which drove 15 percent of all online traffic. o Online Sales: ios sales accounted for 21.9 percent of total online sales, nearly quadruple that of Android, which drove 5.8 percent of all online sales. The Desktop is Not Dead: When consumers did choose to use their PC or desktop, they spent more with an average order value of $ compared to $ for mobile shoppers, a difference of 16.6 percent. Social Influence Facebook vs. Pinterest: As marketers continue to rely on social channels to drive brand loyalty and sales, IBM analyzed trends across two leading sites on Facebook and Pinterest. Facebook referrals drove an average of $ per order compared to $ for Pinterest, a difference of nearly 10 percent. Facebook referrals converted online sales at more than twice the rate of Pinterest. Less Frequent, More Targeted Promos*: Retailers sent an average of 5.3 s on Black Friday 2014, decreasing more than 11 percent over the same period in 2013, as retail marketers continue to send more targeted -- and less frequent -- messages to shoppers. Open and click-through rates when someone opens an and clicks at least one link were 12.9 percent and 2.4 percent, on and Thanksgiving Day, compared to 15.4 percent and 2.8 percent respectively, last year. The also reported real-time trends across four of the hottest retail categories this holiday season: 1. Department Stores: online sales grew by 22.9 percent over 2013, with mobile percentage of sales increasing by 25.7 percent. Average order value was $143.16, a decrease of 2.5 percent year-over-year. 2. Health and Beauty: online sales grew by 56.9 percent over 2013, with mobile percentage of sales increasing by 31.8 percent. Average order value was $72.78, an increase of 9.8 percent year-over-year. 3. Home Goods: online sales grew by 43.2 percent over 2013, with mobile percentage of sales increasing by 3.8 percent. Average order value was $238.46, an increase of 6.8 percent yearover-year. 4. Apparel: online sales grew by 22.6 percent over 2013, with mobile percentage of sales increasing by 25.2 percent. Average order value was $114.96, a decrease of 6.8 percent year-overyear.

4 4 U.S. Retail 2014 Sales Versus: % Thanksgiving % Transaction Metrics Items per Order New Visitor Shopping Cart Sessions Shopping Cart Shopping Cart Abandonment Rate Session Traffic Metrics Average Session Length Bounce (One Page) Rate Browsing Sessions Page Views Per Session Product Views Per Session Desktop Metrics Desktop: % of Sales Desktop: % of Site Traffic Desktop: Bounce Rate Desktop: Desktop: Mobile Metrics Mobile: % of Sales Mobile: % of Site Traffic Mobile: Bounce Rate Mobile: Mobile: Thanksgiving vs vs Thanksgiving % % $ % $ % 3.95% 2.07% 3.26% 21.17% 3.15% 2.61% 2.49% 26.51% 13.23% 8.89% 12.09% 9.43% 27.57% -4.73% 24.18% 14.02% 72.43% 1.93% 75.82% -4.47% 8: % 8: % 31.37% 2.85% 32.43% -3.27% 47.65% 0.57% 46.09% 3.38% % % % % 72.06% -7.82% 67.64% 6.53% 50.14% % 47.62% 5.29% 27.98% 1.82% 29.88% -6.36% 5.80% 10.48% 4.69% 23.67% $ % $ % 27.91% 28.20% 32.33% % 49.63% 25.01% 52.11% -4.76% 34.78% -0.51% 34.74% 0.12% 2.65% 7.29% 2.41% 9.96% $ % $ %

5 5 Thanksgiving Day 2014 U.S. Retail, 24-hr Real-time Sales Chart :00 AM 2:30 AM 5:00 AM 7:30 AM 10:00 AM 12:30 PM 3:00 PM 5:30 PM 8:00 PM 10:30 PM Time of Day (PST) Online sales peaked in the morning and again in the evening on Thanksgiving. Online shopping began to pick up earlier (around 1:45 p.m. PST) than in 2013 leading up to the evening peak time of 7:30 p.m. PST. Online sales grew 14.3% over U.S. Retail, 24-hr Real-time Sales IBM DigitalAnalytics Benchmark :00 AM 2:30 AM 5:00 AM 7:30 AM 10:00 AM 12:30 PM 3:00 PM 5:30 PM Time of Day (PST) online sales were up 9.5% over 2013, peaking at 8:55 a.m. PST. 8:00 PM 10:30 PM

6 6 U.S. Retail, Performance by Device/Platform Smartphone Tablet Desktop % of Traffic 34.69% 14.63% 50.14% % of Sales 11.82% 16.01% 72.06% 1.73% 4.73% 5.80% Bounce Rate 36.52% 30.25% 27.98% Average Page Views $ $ $ Desktop leads in online shopping followed by tablets, then smartphones. U.S. Retail, Performance by Mobile OS IBM Digital Android ios % of Online Site Traffic 15.03% 34.19% % of Online Sales 5.77% 21.88% 2.14% 2.87% Bounce Rate 36.27% 34.13% Average Page Views $98.07 $ ios leads Android in online shopping except in average page views.

7 7 Apparel Sales 22.61% Transaction Metrics Items per Order New Visitor Shopping Cart Sessions Shopping Cart Shopping Cart Abandonment Rate Session Traffic Metrics Average Session Length Bounce (One Page) Rate Browsing Sessions Page Views Per Session Product Views Per Session Desktop Metrics Desktop: % of Sales Desktop: % of Site Traffic Desktop: Bounce Rate Desktop: Desktop: Mobile Metrics Mobile: % of Sales Mobile: % of Site Traffic Mobile: Bounce Rate Mobile: Mobile: Thanksgiving vs vs Thanksgiving % % $ % $ % 3.98% -4.10% 3.04% 30.92% 3.33% -8.77% 2.50% 33.20% 13.81% -1.22% 11.84% 16.64% 21.00% 6.87% 15.39% 36.45% 79.00% -1.68% 84.61% -6.63% 8: % 7: % 29.91% 6.86% 32.87% -9.01% 45.24% -0.83% 42.29% 6.98% % % % % 66.20% -9.29% 60.88% 8.74% 49.47% % 48.98% 1.00% 27.49% 5.25% 32.21% % 5.36% 3.88% 3.80% 41.05% $ % $ % 33.76% 25.18% 39.07% % 50.23% 28.79% 50.74% -1.01% 32.28% 4.84% 33.50% -3.64% 2.94% -1.67% 2.60% 13.08% $ % $ %

8 8 Department Stores Sales 22.91% Transaction Metrics Items per Order New Visitor Shopping Cart Sessions Shopping Cart Shopping Cart Abandonment Rate Session Traffic Metrics Average Session Length Bounce (One Page) Rate Browsing Sessions Page Views Per Session Product Views Per Session Desktop Metrics Desktop: % of Sales Desktop: % of Site Traffic Desktop: Bounce Rate Desktop: Desktop: Mobile Metrics Mobile: % of Sales Mobile: % of Site Traffic Mobile: Bounce Rate Mobile: Mobile: Thanksgiving vs vs Thanksgiving % % $ % $ % 4.07% 1.24% 3.47% 17.29% 3.30% -3.23% 2.67% 23.60% 14.98% 2.67% 14.15% 5.87% 26.90% 2.09% 24.41% 10.20% 73.10% -0.75% 75.59% -3.29% 9: % 10: % 27.12% 10.74% 26.85% 1.01% 50.02% -1.65% 47.31% 5.73% % % % % 69.79% -8.12% 65.88% 5.94% 48.07% % 44.96% 6.92% 23.34% 19.45% 23.77% -1.81% 6.07% 8.59% 5.24% 15.84% $ % $ % 30.19% 25.74% 34.10% % 51.76% 20.71% 54.82% -5.58% 30.61% -0.94% 29.35% 4.29% 2.47% 10.27% 2.29% 7.86% $ % $ %

9 9 Health and Beauty Sales 56.93% Transaction Metrics Items per Order New Visitor Shopping Cart Sessions Shopping Cart Shopping Cart Abandonment Rate Session Traffic Metrics Average Session Length Bounce (One Page) Rate Browsing Sessions Page Views Per Session Product Views Per Session Desktop Metrics Desktop: % of Sales Desktop: % of Site Traffic Desktop: Bounce Rate Desktop: Desktop: Mobile Metrics Mobile: % of Sales Mobile: % of Site Traffic Mobile: Bounce Rate Mobile: Mobile: Thanksgiving vs vs Thanksgiving % % $ % $ % 5.23% -7.92% 4.10% 27.56% 4.87% -3.56% 3.59% 35.65% 17.71% -4.48% 16.17% 9.52% 29.47% -3.63% 25.31% 16.44% 70.53% 1.60% 74.69% -5.57% 7: % 6: % 30.78% -9.36% 36.93% % 48.11% -3.66% 45.64% 5.41% % % % % 61.52% % 60.32% 1.99% 38.71% % 36.88% 4.96% 23.97% % 29.71% % 8.50% 5.72% 6.97% 21.95% $ % $ % 38.43% 31.79% 39.63% -3.03% 61.00% 27.86% 62.79% -2.85% 35.08% % 41.16% % 3.50% -6.17% 2.79% 25.45% $ % $ %

10 10 Home Sales 43.18% Transaction Metrics Items per Order New Visitor Shopping Cart Sessions Shopping Cart Shopping Cart Abandonment Rate Session Traffic Metrics Average Session Length Bounce (One Page) Rate Browsing Sessions Page Views Per Session Product Views Per Session Desktop Metrics Desktop: % of Sales Desktop: % of Site Traffic Desktop: Bounce Rate Desktop: Desktop: Mobile Metrics Mobile: % of Sales Mobile: % of Site Traffic Mobile: Bounce Rate Mobile: Mobile: Thanksgiving vs vs Thanksgiving % % $ % $ % 3.19% 38.10% 1.98% 61.11% 2.52% 13.51% 1.50% 68.00% 10.45% 38.41% 8.03% 30.14% 30.45% 0.00% 24.60% 23.78% 69.55% 0.00% 75.40% -7.76% 6: % 6: % 31.83% 9.65% 35.14% -9.42% 53.49% 17.53% 51.77% 3.32% % % % % 73.77% -1.28% 70.28% 4.97% 56.08% % 53.26% 5.29% 29.46% 27.31% 32.92% % 4.13% 58.85% 2.57% 60.70% $ % $ % 26.21% 3.84% 29.72% % 43.86% 30.89% 46.67% -6.02% 34.86% % 37.66% -7.43% 2.18% 16.58% 1.43% 52.45% $ % $ %

11 11 Transaction Summary Metrics 1. Items Per Order The average number of items purchased per order 2. The average value of a submitted order 3. The percentage of sessions that resulted in an order 4. New Visitor Out of all new visitor sessions, the percentage that completed an order 5. Shopping Cart Session Percentage The percentage of sessions in which visitors placed at least one item in their shopping carts 6. Shopping Cart The percentage of shopping carts that resulted in an order 7. Shopping Cart Abandonment Rate The percentage of shopping carts that are abandoned without completing the order Session Traffic Summary Metrics 1. Average Session Length The average length of time for a visitor session 2. Bounce (One Page) Rate The percentage of sessions in which visitors only viewed one page before leaving the site 3. Browsing Session Percentage The percentage of sessions in which visitors viewed at least one product page 4. Page Views Per Session The average number of pages viewed in a single session 5. Product Views Per Session The average number of products viewed in a single session Desktop and Mobile Summary Metrics 1. Percentage of Sales Out of all online sales, the percentage that was from desktop (or) from mobile devices 2. Percentage of Site Traffic Out of all sessions, the percentage that was from desktop (or) from mobile devices 3. Bounce Rate The percentage of sessions from desktop (or) from mobile devices in which visitors only viewed one page before leaving the site 4. The percentage of sessions from desktop (or) from mobile devices that resulted in an order 5. The average value of orders submitted by desktop (or) by mobile devices

12 12 About is part of the cloud based IBM Digital Analytics solution and enables users to accurately measure their online marketing results including e commerce sales against that of their peers. Benchmark is the only real time, self service solution that delivers aggregated and anonymous competitive data for a comprehensive set of key performance indicators, showing how a site performs compared to its industry vertical and subvertical peers and competitors. Key performance indicators span traffic, engagement, channels, sales and conversion metrics including mobile, social and more. About IBM ExperienceOne IBM ExperienceOne helps organizations attract, delight and maximize the lifetime value of customers by enriching the ways they engage with each of them. IBM ExperienceOne provides solutions and expertise to help marketing, merchandising, sales and customer service leaders achieve specific business goals. About IBM Smarter Commerce IBM Smarter Commerce puts the customer at the center of your business by viewing the brand experience through your customer s eyes. At the same time, it optimizes within and across all brand touchpoints to create a deeper brand relationship with your customer while improving operational excellence for you. It leverages heightened customer insight and automated execution to enable you to consistently deliver personalized, highly relevant, seamless customer engagement to increase satisfaction, loyalty, and brand advocacy and improve asset utilization to drive profitable growth. For More Information To learn more about IBM ExperienceOne customer engagement solutions, please contact your IBM marketing representative or IBM Business Partner, or visit the following website: ibm.com/software/marketing solutions/experienceone For more information on, visit ibm.com/benchmark Follow IBM ExperienceOne Twitter: IBMExpOne

13 13 Copyright IBM Corporation 2014 IBM Corporation Software Group Route 100 Somers, NY Produced in the United States of America November 2014 IBM, the IBM logo, ibm.com and Smarter Commerce are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at Copyright and trademark information at This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. THE INFORMATION IN THIS DOCUMENT IS PROVIDED AS IS WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.

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