IBM: Online consumer spending jumps 15% in Q2
Armonk, N.Y. — Online consumer spending rose a healthy 15% in the second quarter of this year compared to the second quarter of last year. The IBM Online Retail Sales Index shows that mobile sales reached 19.4% of total online sales, up 28% from last year. Online shopping growth substantially outpaced the 4.6% year-over-year increase of in-store sales during the second quarter.
Other highlights from the Index include a 55% year-over-year increase in online health and beauty sales and 56% rise in online home goods sales, as well as a 21% increase in online apparel sales driven by retailers reducing prices to clear space for back-to-school inventory. Average order value online reached $413.23, a 26$ increase from the second quarter of 2012, with the iPad generating more traffic than any other mobile device.
In addition, Index statistics demonstrate that the number of consumers using a mobile device to visit a retailer’s site reached nearly 27%, up more than 35% year-over-year. The iPad generated more traffic than any other mobile device at close to 11% of retail traffic, a 60% increase from last year. The iPhone closely followed, generating 10.5% of traffic, with Android devices generating 7.1%.
Americans’ egg consumption on the rise
The nation’s largest egg producer, Cal-Maine Foods, said it sold 243.3 million dozen eggs in its fourth quarter ended June 1, and moved closer to surpassing the 1 billion dozen threshold for the full fiscal year.
The 243.3 million dozen eggs sold in the fourth quarter was an increase of 6.3% from 228.8 million dozen sold in the fourth quarter the prior year. The full year total of 948.5 million dozen was a 7.3% increase from 884.3 million dozen the prior year.
The average selling price of a dozen eggs in the fourth quarter was $1.28, compared to $1.15 during the comparable period the prior year.
The combination of increased volume and higher average selling prices allowed Cal-Maine to grow fourth quarter net sales to $325.9 million compared to $275.2 million. Excluding several non-recurring charges, the company reported a profit of $13.2 million, or 55 cents a share, compared to $10.3 million, or 44 cents a share, the prior year.
Full year sales increased to $1.3 billion from $1.1 billion and profits on an adjusted basis were $67.5 million, or $2.81 a share, compared to $62.7 million, or $2.64 a share.
“We were pleased with our results with our fourth quarter sales up 18% over the same period a year ago,” said Cal-Maine chairman, president and CEO Dolph Baker. “These results reflect higher volumes related to acquisitions with a 6% increase in eggs produced and sold compared with the same period a year ago. Notably, we achieved this growth even though we had an extra week of sales in the previous year’s fourth quarter.”
The company touted the performance of its specialty egg business where favorable demand trends are expected to continue.
“Overall, our average selling prices were up 7.9% in fiscal 2013,” Baker said regarding specialty eggs. “We expect specialty eggs, which have a higher retail selling price, will continue to gain market share over regular eggs as more consumers are willing to pay for these premium products.”
Electrolux strengthens supply chain leadership
CHARLOTTE, N.C. — Electrolux Major Appliances North America has named Daren Couture as SVP of end-to-end supply chain. Couture will oversee the company’s supply chain and nine manufacturing facilities in North America, including the newest cooking appliances facility located in Memphis, Tenn.
"Daren’s extensive experience, strong background and proven results make him a great fit for our company,” said Jack Truong, president and CEO of Electrolux Major Appliances North America. “We are excited to welcome him to the team and are confident he will excel as we continue our dedication to improving manufacturing quality, speed and flexibility."
Couture has more than 20 years of experience in manufacturing operations and supply chain management. He most recently served as SVP of global operations for Danaher Corporation, where he led manufacturing, procurement, service and supply chain for the company’s platform serving the test and measurement markets.
Earlier in his career, Couture held several positions at Newell Rubbermaid working with brands including Sharpie, Paper Mate, Waterman, Parker, DYMO, Rolodex, Mimio and Card Scan.
Couture has a bachelor’s degree in applied arts and science from Rochester Institute of Technology with a concentration in quality and manufacturing management, reliability and project management.
Electrolux is a global leader in household appliances and appliances for professional use, selling more than 50 million products to customers in more than 150 markets every year. Electrolux products include refrigerators, dishwashers, washing machines, cookers, air-conditioners and small appliances such as vacuum cleaners sold under brands which include Electrolux, AEG, Eureka and Frigidaire.