Cyber Week 2018

How did online retail perform?

Who were the top players in 2018?

What did Amazon do this year?

TOP HEADLINES

UK

TOP HEADLINES

CHAPTER ONE

Industry TrendsOnline retail traffic dropped 1.3% over Cyber Week, but conversion rates rose 9.3% year-on-year. More people also searched for Black Friday deals

earlier in the month of November.

CHAPTER TWO

Top Players & Top Risers Apparel & Accessories, House & Garden, and Groceries & Alcohol grew over 5% year-on-year. Amazon and eBay also gained more ground the week

before Cyber Week.

CHAPTER THREE

Amazon’s Black Friday SuccessAmazon processed over 4.22M transactions on Black Friday, up 9% compared to last year. Search was key to their success, with Amazon

seeing a 24% increase on Black Friday.

Hitwise is a global consumer insights provider that helps brands and agencies, like Ralph Lauren, Conde Nast, Disney and Group M, to segment,

reach, and engage with online audiences. For over twenty years, we have delivered unique insights into how consumers behave - from initial

search to final purchase, at any moment in time, across any device.

Cyber Week Review 2018 - UK | 3

RETAIL TRAFFIC WAS DOWN ON BLACK FRIDAY AND CYBER MONDAY

Industry OverviewCHAPTER ONE

Cyber Week reached 1.39B online retail visits, with peak days, Black Friday and Cyber Monday, registering 194M and 191M visits,

respectively. Compared to last year, Cyber Week activity was down 1.3%. Even though top retailers had started their promotions

before Cyber Week, the week ending 18th November also saw a larger decline of 3.2%. This decline wasn’t across the board

though; top retailer, Amazon, grew 3.0% YoY the week before and 2.1% YoY during Cyber Week.

Online retail traffic dropped 1.3% over Cyber Week, but conversion rates rose 9.3% year-on-year.More people also searched for Black Friday deals earlier in the month of November.

Online Retail Industry Daily Visits (in millions) and % YoY Change

2018 Visits

% YoY

12/11 13/11

Week Before (Mon-Sun)

993M visitsDown 3.2% YoY

Cyber Week (Mon-Mon)

1.39B visitsDown 1.3% YoY

14/11 15/11 17/11 20/1116/11 18/11 21/11 22/11 24/11 25/1119/11 Black Friday 23/11

Cyber Monday

26/11

4%

0%

-4%

-8%

220

180

140

100

Black Friday194M visits

Down 3.2% YoYCyber Monday

191M visitsDown 2.2% YoY

Cyber Week Review 2018 - UK | 4

CONVERSION RATES HAVE GROWN

Whilst online retail activity declined, the quality of that traffic had improved in 2018. Conversion rates, which are the proportion

of visits that lead to online purchases, were greater in the week before and during Cyber Week. Looking at the 30 top retailers,

conversion rates were up 7.0% the week before (2.72% average) and up 5.5% over Cyber Week (3.32% average).

Average Conversion for 30 Top Retailers Daily Conversion Rate 2018 vs 2017

2018 Conversion Rate2017 Conversion Rate

12/11 13/11

Week Before (Mon-Sun)

2.72% Daily ConversionUp 7.0% YoY

2.85%2.84%

4.23%

3.74%

2.50% 2.44%

4.01%

3.45%

Cyber Week (Mon-Mon)

3.32% Daily ConversionUp 5.5% YoY

14/11 15/11 17/11 20/1116/11 18/11 21/11 22/11 24/11 25/1119/11 Black Friday 23/11

Cyber Monday

26/11

5%

4%

3%

2%

Cyber Week Review 2018 - UK | 5

SEARCHES FOR “BLACK FRIDAY” GREW TWO WEEKS PRIOR

The weeks in which people were looking for “Black Friday” or “Cyber Monday” also shifted. The number of people searching for

deals had dropped 5% in the week of Black Friday (ending 24th November). This change occurred among Females and people

aged 18-24 yo. Instead, these audiences were more likely to search for deals two weeks prior (ending 10th November).

Searchers of “Black Friday” & “Cyber Monday” Weekly Unique Users (in millions) 2018 vs 2017

3 Weeks Prior(to 3/11)

1 Week Prior (to 17/11)

Week of Black Friday(to 24/11)

2 Weeks Prior (to 10/11)

2017 Searchers

2018 Searchers

2 Weeks Before 457K Searchers

Females up 2.6% YoY 18-24 yo up 3.7% YoY

Week of Black Friday 3.06M Searchers

Females down 1.1% YoY 18-24 yo down 3.7% YoY

-1%+20%

-1%

-5%

4

3

2

1

0

WHAT DOES THIS DATA TELL US? Since Black Friday came to our shores in 2013, we’ve become accustomed to seeing exponential online growth. 2018 has been a different story. Cyber Week traffic was down for the first time. This impact wasn’t across the board though; top retailer, Amazon, still grew. We are also getting more effective at converting visitors into buyers.

Cyber Week Review 2018 - UK | 6

APPAREL, HOUSE & GARDEN, AND GROCERIES GREW OVER CYBER WEEK

Top Players & Top RisersCHAPTER TWO

Major closures among top retailers, like House of Fraser and Tesco, largely impacted online traffic results for Department

Stores. Accounting for 41% of the total industry, Department Stores dipped both on Black Friday by 7% and Cyber Week by

3%. In contrast, verticals that have grown throughout the year continued to rise, including: Apparel & Accessories, House &

Garden, and Groceries & Alcohol.

Apparel & Accessories, House & Garden, and Groceries & Alcohol grew over 5% year-on-year. Amazon and eBay also gained more ground the week before Cyber Week.

Retail Verticals Visits on Black Friday and Cyber Week (in millions and % YoY)

Department Stores

Apparel & Accessories

Auctions

House & Garden

Rewards

Electronics

Sport & Fitness

Health & Beauty

Toys & Hobbies

Groceries & Alcohol

79.3

37.9

12.4

11.7

11.9

10.5

8.3

7.4

4.3

3.9

 563.5

245.7

112.9

97.2

85.6

60.6

53.6

46.4

33.6

34.8

-7%

3%

2%

8%

-2%

-3%

-9%

0%

-11%

12%

-3%

5%

0%

6%

-3%

-3%

-4%

0%

-7%

10%

Vertical Black Friday Cyber Week % YoY % YoY

Cyber Week Review 2018 - UK | 7

“50% OFF EVERYTHING” PLUS WAS THE SWEET SPOT FOR FAST RISERS

These verticals were largely bolstered by key brands promoting deep discounts. In Apparel and House & Garden, brands like

Boohoo, PrettyLittleThing, Matalan, and Wayfair headlined with more than 50% off discounts store-wide. Top risers in Groceries

and Alcohol took a different approach. Aldi didn’t officially partake in Black Friday sales, instead, offered their own “specialbuys”

on top appliances. Ocado had a special promotion off the first shop + free delivery to entice new customers.

Fast Risers % YoY in Visit Share on Black Friday

Apparel House & Garden Groceries & Alcohol

+25% +74% +49%

+20% +69% +22%

Boohoo“60% off everything”

Matalan“Up to 50% off everything”

AldiOfficially did not take part, but offered “Specialbuys”

PrettyLittleThing“50% off everything”

Wayfair“Up to 70% off everything”

OcadoOffered special promo “30% off first shop + 1yr free delivery”

Cyber Week Review 2018 - UK | 8

AMAZON AND EBAY GAINED GROUND THE WEEK BEFORE CYBER WEEK

Amazon rose by 3% YoY to reach over one-quarter of the industry’s share during Cyber Week. But comparing visit share by

week, Amazon and eBay had gained more ground the week before. Whereas all other top retailers, particularly Argos, John

Lewis, and Currys, took a much higher share on the day of Black Friday

Top 10 Retailers Visits in Black Friday and Cyber Week (in millions)

Amazon UK

eBay UK

Argos

John Lewis

Marks & Spencer

Currys

Next

ASOS

Very

Debenhams

27.6%

8.6%

2.9%

1.5%

1.2%

1.1%

1.0%

0.9%

0.8%

0.6%

25.8%

5.8%

3.8%

2.4%

0.9%

2.0%

1.1%

1.1%

0.9%

1.2%

26.4%

7.4%

3.2%

2.0%

1.0%

1.4%

1.0%

1.0%

0.8%

1.0%

Top Retailers Week Before (Mon-Sun) Black Friday (23/11) Cyber Week (Mon-Mon)

Amazon, eBay and M&S gained more share the week before Cyber Week

Other top retailers, especially Argos, John Lewis, and Currys, gained share on Black Friday

WHAT DOES THIS DATA TELL US?Consumers aren’t falling for smoke and mirrors. Retailers and brands that headlined with deep discounts, or ones that were creative with their product and delivery promotions, were the most successful in 2018. Like last year, starting well before Black Friday also paid off for the top two retailers, Amazon and eBay.

Cyber Week Review 2018 - UK | 9

AMAZON HAD ITS BIGGEST CYBER WEEK TO DATE

Amazon’s Black Friday CHAPTER THREE

From Launch Day, Black Friday to Cyber Monday, Amazon saw success on each key date. Starting their Black Friday sales on 16th

November, visits and transactions grew 5% and 22%, respectively - the largest rise out of all peak days. Amazon also processed

4.22M transactions on Black Friday, and received 52.44M visits on Cyber Monday - the largest of these figures to date.

Amazon processed over 4.22M transactions on Black Friday, up 9% compared to last year. Search was key to their success, with Amazon seeing a 24% increase on Black Friday.

Amazon’s Black Friday

Amazon’s Cyber Week in Numbers

Day of Launch (16/11) Biggest day of growth YoY

Black Friday (23/11) Biggest day of trasnactions

Cyber Monday (26/11) Biggest day of visits

Visits Total visits (m) % YoY visits

Transactions

Total transactions (m)

% YoY transactions

Conversions

Conversion rate

Visitors that made a purchase

42.39

5%

2.98

22%

7.02%

1 in 7 visitors(or 15% of visitors)

49.98

-1%

4.22

9%

8.44%

1 in 5 visitors(or 19% of visitors)

52.44

2%

3.90

7%

7.44%

1 in 6 visitors(or 16% of visitors)

Cyber Week Review 2018 - UK | 10

SEARCH WAS KEY TO AMAZON’S SUCCESS

Searches starting on Amazon was key to this rise, with the volume of sessions increasing by 24% on Black Friday. Searches for

popular gaming consoles like the “Nintendo” and Amazon’s “Echo Dot” skyrocketed compared to last year, and featured among

their top purchased products. Additionally, groceries and alcohol also popped into Amazon’s top list, from Ferror Collection, Jack

Daniel’s to Instant Pots.

Amazon on Black Friday Top Searches & Top Products

“Laptop”

“PS4”

“Nintendo Switch”

“Lego”

“Fitbit”

“Headphones”

“Echo Dot”

“SSD”

“PS4 Games”

“Tablet”

SanDisk Ultra 128GB

All-new Echo Dot (3rd Gen) Charcoal Fabric

Fire TV Stick with 1st Gen

Amazon Echo (2nd Gen) Charcoal Fabric

Ferrero Collection, 48 Pieces

Samsung MZ-76E500B/EU 500 GB

Nintendo Switch - Neon Red/Neon Blue

Fire TV Stick 4K Ultra HD

Jack Daniel’s Whiskey, 70 cl

Instant Pot Duo V2 7-in-1

1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

643,092

474,749

471,720

425,672

404,352

344,700

292,286

290,190

281,423

231,357

17.3K

10.6K

9.0K

8.0K

7.0K

6.6K

6.6K

5.3K

4.7K

4.5K

343%

167%

30%

174%

135%

139%

1191%

214%

289%

194%

26%

9%

12%

7%

22%

10%

10%

19%

22%

12%

Searches Products# Searches # Purchases% YoY % Conversion

Amazon’s own devices, Echo Dot & Fire Stick, topped search and product purchases.

Gaming consoles, the PS4 and Nintendo Switch, also topped Amazon’s list.

Cyber Week Review 2018 - UK | 11

CONVERTING VISITORS TO BUYERS WAS ALSO KEY

Over the two weeks to Black Friday (ending 24th November), Amazon converted 28% of their visitors into buyers. Out of those

buyers, 54% exclusively bought with the retailer*. Amazon’s total buyers and exclusive buyers were both up 4% YoY. These shifts

came from mostly older audiences from London and South East regions.

Amazon Buyer Profile Audience Size and Profile Shifts

* Exclusive Buyers = Purchased on Amazon, and did not

purchase on other top 7 retailers (Argos, Next, John Lewis,

Currys, ASOS, M&S and eBay).

Amazon Buyers28% of Amazon’s Visitors

Shift YoY:

Up 3.8% YoY in size

Up 11% for 45-54 yo Male Up 10% for 25-34 yo Male Up 6% for 45-54 yo Female

Up 10% from London regionUp 9% for South East region

Amazon Exclusive Buyers*54% of Amazon’s Buyers

Shift YoY:

Up 4.0% YoY in size

Up 12% for 18-24 yo FemalesUp 11% for 45-54 yo Males Up 10% for 25-34 yo Females Up 9% from London region Up 8% from South East region

23.13M

6.47M

3.48M

Amazon Visitors

Amazon Buyers

Amazon ExclusiveBuyers

WHAT DOES THIS DATA TELL US?As other department stores struggle, Amazon continues to grow. The retailer is operating like a search engine. They have gotten better at keeping people on their site, and only buying from them. The top products list helps explain why this is the case. Amazon is increasingly becoming the go-to-marketplace for broader categories, like gifts, food and alcohol this peak season.

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APPENDIX

Page 3: Hitwise UK. Daily visits to Shopping & Classifieds Industry.

Page 4: Hitwise UK. Average daily conversion, calculated as a simple average

across 30 top retailers (by traffic).

Page 5: Hitwise UK. Number of unique users searching for “Black Friday”, “Cyber

Monday” & “Cyber Week” (and variations of these terms).

Page 6: Hitwise UK. Daily visits to sub industries of Shopping & Classifieds.

Cyber Week = Monday 19 Nov to Monday 26 Nov.

Page 7 Hitwise UK. Visit share YoY in Shopping & Classifieds industry.

Page 8: Hitwise UK. Share of visits to the Shopping & Classifieds industry.

Cyber Week = Monday 19 Nov to Monday 26 Nov. Top 10 retailers by traffic.

Page 9: Hitwise UK. Visit share YoY in Shopping & Classifieds industry.

Page 10: Hitwise UK. Top searches and purchases on Amazon, 23 Nov.

Page 11: Hitwise UK. Audience = visitors, buyers or exclusive buyers of

Amazon. 2 weeks to 24 Nov.