Shopping Blog

The Commerce Department just released May 2011 retail sales data, reporting that retail sales fell in May for the first time in 11 months. The decline was only 0.2 percent — less than the 0.4% decline economists had forecast. Here are some highlights from the May sales report:

• Sporting Goods, Hobby, Book and Music sales declined 0.4%
• Electronics and Appliances sales fell 1.3%
• Clothing store sales increased 0.2%
• Building Materials and Garden Equipment Suppliers sales increased 1.2%

The month of May included both Mother’s Day and Memorial Day weekend — two retail periods that typically coincide with shopping for flowers, gift cards, and women’s apparel (for mom!); or moving, installing a new ceiling fan, or grilling out over that long last weekend in May.

Looking ahead to Father’s Day and the month of June, it’s difficult to say just what will be driving retail sales. Will it be cordless drills? After all, what dad doesn’t like power tools? Steaks are also likely to be a hit, too. And when all that hard work and au jus ends up staining dad’s favorite T, what better gift than some new undershirts?















And let’s not forget that the July 4th weekend kicks off on Friday, July 1. As a result, June may see its fair share of grill and barbeque-related sales (grill tool sets!). Maybe the gift of the year for all the superstar dads will be this star-spangled “Caperon!” Of course, there’s always the default solution for the impossible to shop for pop: gift cards!

As for me, if my two year old happens to be reading this (wink, wink mommy): that Caperon, a new set of grill tools, and a juicy bone-in ribeye look like a mighty nice gift to me!

Posted by Justin Owings, The Google Retail Team

Consumers are smarter than ever and utilize Google to hunt for sales and promotions, especially around holidays. Whether it’s Valentine’s Day or President’s Day (both of which were wildly successful this year) shoppers are now trained to search for deals around these dates.

St. Patrick’s Day is right around the corner, and looking at historical search volume, queries for ‘St. Patrick’s Day sale’ terms were up 92% from ’09 to ’10, and three weeks out from the big day, advertisers are already advertising on holiday sale terms.
















We can only anticipate that queries for deals, coupon codes and sales will continue the upward climb this year. And what about other upcoming celebrations to plan for?

Earth Day, which will be celebrated on April 22nd this year, also had a large year over year increase from ’09 to ’10, with Earth Day sale and promotion searches jumping 49%, while Mother’s Day, Memorial Day and Father’s Day deal terms also soared.




















Source: Google Internal Data


In order to build quality score and maintain low CPCs, get in the auction early! If you are running a promotion around St. Patrick’s Day, go ahead and imagine Clint Eastwood asking, ‘Do you feel lucky? Well, do ya?’


Posted by Kelly Smith, The Google Retail Team

As with Mother's Day shopping trends, consumers are getting a head start on the quest for the perfect gift for dad. Taking a look at indexed search volume, we find that searches for "father's day gifts" began to increase in early February.

There is good news for clothing retailers this Father’s Day season. American consumers expect to spend close to $1.3 billion on clothing out of a total $9.4 billion. Of that $1.3 billion, an impressive 20% is expected to be spent online. [1] The old standbys, socks, neckties, and belts, will remain popular, as will gift cards.

So while dad may not need another tie, it looks like that’s exactly what dad’s going to receive. That said, online retailers can think creatively in the final push. What is it that dads would like to receive and families can afford to purchase? What should online retailers be doing to encourage these purchases?

Many have discussed the possibility of family members purchasing gifts that can be used by the entire family: grills, tents, and luggage. Others think that given the economy the past nine months, dads deserve to be pampered with more luxurious personal care products like high-end shaving creams and razors. In fact, the demand for men’s beauty products has grown over the past years [2] but some men still feel uncomfortable purchasing those products for themselves. This leads to increased online sales from the privacy of their own homes, in fact, online sales of cosmetics and fragrances will grow by nearly 67% between 2008 and 2012. [3]

Keep in mind that the main purchasers of Father’s Day gifts are wives and children, each bringing a different budget to the table. Both are interested in sales and coupons and will benefit from clear ‘Order By for Father’s Day Delivery’ dates on the website. For websites with accompanying brick and mortar stores, don’t forget to push last minute in-store purchases through coupons available on your website. Use text ads to highlight ‘In Store Pickup’ or ‘In Store Coupon Available’ as we pass the final ship-by dates.

In 2008, Father’s Day fell on June 15th. As the data below shows, searches for “father’s day gifts” began to rise about four weeks before the holiday. Searches on this term then hit their peak on June 14th, and although consumers may not have purchased items online, they reviewed products and sales on the internet and then headed to the nearest retail store. As an advertiser you must be thinking, “If my consumers can no longer purchase online in time for Father’s Day, how I can attract them to my store?” Again, use what’s been working all year: coupon codes and special promotions. Once the gift is chosen, the consumer is still going to want to find the best price, so make sure your ad emphasizes any current in-store deals. This is a great time to update your Local Business Ads to reflect that as well.


In addition, Father’s Day is later this year, which means consumers are thinking ‘summer’ more than they have in the past. Timing is right for bathing suits and sports apparel like golf shirts, running shorts, and flip flops. As we’ve seen in years past, the online activity peaks on Father’s Day but continues for a few days afterwards. There will always be the last minute and forgetful shoppers, so it’s important to be “on” through the very end.

We all know dads have been working hard, which means they deserve the cards and presents more than ever. Happy Father’s Day!

[1] “Tough Economy Brings More of the Same for Dad: Ties, Gift Cards and Lots of Love,” NRF, June, 2009.
[2] “Marketing to Men: Opportunities for Growth in the Grooming Market,” AllBusiness.com, April, 2008
[3] “Outlook for E-Commerce in 2008 and Beyond,” Forrester Research, February, 2008

Posted by Elizabeth Fabiani and Kelsey Hogg, the Google Retail Team