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Demandware Forecasts a Happy Holiday for Digital Commerce

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Demandware Forecasts a Happy Holiday for Digital Commerce    

 

Demandware Shopping Index data indicates sharp rise in site visits, online transactions

 

                                                                                                                    

Burlington, Mass. – November 25, 2015 – Demandware®, Inc. (NYSE: DWRE), the industry-leading provider of enterprise cloud commerce solutions, today is predicting steady holiday shopping season growth in digital commerce.

In its “Ready to Wrap” Report , Demandware projects that the peak holiday shopping period, which begins Wednesday, November 19 and culminates on December 26, will take a bigger piece of the entire year’s order pie. Globally, Demandware predicts that this 5-week period will account for 22% of this year’s total orders placed, up from 21% the year prior, thanks in large part to an extra shopping day between Thanksgiving and Christmas. In the US, Demandware predicts that the peak season’s order share will be slightly larger – up to 25% from 23% last year. Not surprisingly, Demandware predicts a spike in transactions between Black Friday and Cyber Monday. The company expects Black Friday to account for 23% of ‘Cyber Week’ orders - up 10% year over year - edging closer to the 25% of orders expected on Cyber Monday. The “Ready to Wrap” Report is based on Demandware Shopping Index data processing that today measures the shopping activity of over 200 million shoppers worldwide running on more than 1,300 websites of the 300 clients using Demandware Cloud- based Platform.

Using historical peak season data along with 2015 trends, the company has identified four critical factors that will drive record-breaking visits and transactions during the Christmas/Holiday Shopping Season.

 

  1. Forget the letters to Santa, check the kids’ cart – As shoppers evolve the way they browse online, the shopping basket is evolving into a “Wish List.” Thanks in large part to increasing basket rates on phones, Demandware predicts that shoppers will create 25% more carts this year.

 

  1. Holiday incentives: free shipping spikes and discounts rise – The peak shopping season is renowned for discounts and a heavy emphasis on free shipping, as shoppers search for value. This year will be no exception, with Demandware predicting that 82% of orders will ship for free, up from 73% in 2014. In addition, the company projects that the average order will be discounted 18%.

 

  1. Traffic piles up, not just in the parking lot – The combination of steady growth in 2015 together with last year’s strong peak season and the additional shopping day between Thanksgiving and Christmas in 2015, points towards a 31% increase in orders, globally. Web traffic will be the catalyst for this, with visits projected to increase 22% this peak season compared to 2014. Shoppers are projected to make 6% more visits to the same site and spend roughly 3% more on that site. Mobile will likely earn much of the credit for the visit increases, thanks to the increase in cross-device shopping and uptick in mobile shopping adoption.
  2. Phones on full charge –In 2013, 23% of peak season traffic was on phones compared to computers and tablets. In 2014, that share rose to 33%. The growth rate continues this year with traffic share projected to be 47% globally. Order share forecasts indicate even steeper gains – with 23% orders expected to come from phones, compared to 10% in 2013 and 16% in 2014. Phones will be the #1 device for digital commerce traffic.

 

About Demandware

Demandware, the category defining leader of enterprise cloud commerce solutions, empowers the world’s leading retailers to continuously innovate in our complex, consumer-driven world. Demandware’s open cloud platform provides unique benefits including seamless innovation, the LINK ecosystem of integrated best-of-breed partners, and community insight to optimize customer experiences. These advantages enable Demandware customers to lead their markets and grow faster. For more information, visit http://www.demandware.com, call +1-888-553-9216 or email info@demandware.com.

 

Ready to Wrap, and these forecasted values, are not indicative of Demandware's operational performance or its reported or forecast financial metrics, including subscription revenue, order and comparable GMV growth. These may include forward-looking projections based on current and prior values and as such should not be read as guarantees of future performance or results.

 

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published on 11/25/2015

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