The stagnant world economy continues to be a drag on consumer demand, even as the 2011 holiday season approaches. The growth rate for the upcoming holiday season will be 2.8 percent in total retail sales -- half of last year's 5.6 percent actual growth -- according to London-based Kantar Retail, a division of Kantar Group, the insight and consulting arm of WPP, the world's largest communications group.

The breakdown of where sales will come from is a true sign of the times -- and a warning to traditional retailers. Kantar predicts that U.S. online sales from October through December will rise 13.5 percent, to $60.4 billion from $53.2 billion last year. While this is lower than the percentage increase from 2009 to 2010, it speaks to the continuing growth in market share of online shopping. Continue reading...

As holiday planning approaches, a new Motista study suggests retailers should look beyond traditional sales-drivers such as awareness, holiday emotion and themes and find better ways to engage increasingly savvy consumers. They also find that men and women connect with retailers differently.

Major brands included in the study were Amazon, Barnes and Noble, Best Buy, Gap, Crate & Barrel, Macy’s, Nordstrom and Walmart. Findings highlighted important differences between consumers who are "satisfied and those emotionally connected to brands. Continue reading...

Microsoft seems poised to party like it’s 1999 with the global launch of its Kinect hands-free control system for Xbox 360. The prelaunch buzz has been justifiably massive. Now, with the wind of strong presales at their back, Microsoft has upped their 2010 sales estimates from 3 million to 5 million, but even at those numbers it looks like there will be a lot of disappointed shoppers this holiday season.

Kinect launched November 4 in the U.S. and already it’s selling out at major retailers like Target, Walmart and Best Buy across the country. And you can forget about buying one online.

The rollout of the device continues in Europe November 10; Australia, New Zealand and Singapore on November 18; and Japan, Taiwan and Hong Kong on November 20. Already the supply shortage stories are leading the coverage on all fronts.

Every holiday shopping season has its buzz product—the one that everyone wants and only the most cutthroat get, generating bemused reports of victorious pillagers and trampled shoppers. If Microsoft can manage to keep the balance of supply and demand on the desperate-for-a-miracle level, this might just be the season of Kinect.

Will it be a happy holiday for recession-weary electronics retailers? IBM is betting on it, forecasting that consumer spending on electronics and appliances will be "larger-than-usual" in November. Pre-holiday sales will hit the ground running according to an analytics-based forecast produced by IBM – and retailers should be prepared.

"The forecast indicates that retailers should be ready for a robust Black Friday and Cyber Monday," said Global Business Services partner and IBM retail analytics leader Michael Haydock. "Retailers that staff up and stock up for November and invest in advertising are likely to have a substantial advantage in the marketplace."

IBM predicts consumer electronics and appliance sales to total $10.164 billion this November, a 4% year over year bump, with $8.688 billion for consumer electronics and $1.476 billion for appliances. Continue reading...

Attention Kmart (and Wal-Mart) shoppers! Two pillars of America’s retailing sector, dependent on holiday shopping, have launched new campaigns to let consumers know they care.

One year after the economy began its descent into recession, both retailers have announced aggressive plans to alert parents that they can see their children’s faces light up on Christmas morning without breaking the already-fragile bank.

Wal-Mart will offer about 100 different toys for $10 or less, while Kmart has unveiled its first list of 15 “hot toys” in advance of an advertising blitz for its holiday layaway program.Continue reading...

Christmas shopping seems to start earlier every year, reflecting the angst retailers feel with each approaching season.

Toys "R" Us, in fact, is already planning for slow sales, and will be opening about 350 "Holiday Express" locatons across the country in the coming month. (Not to be confused with "Holiday Inn Express," where you could have stayed last night.) This move is designed to place Toys "R" Us products closer to consumers wearied by a slumping economy.

Wal-Mart seems to have more faith that shoppers will return to the stores later year, tweaking their toy-vending rival, "You won't see us putting up Christmas decorations in September."Continue reading...

Mixed retail sales and weak back-to-school numbers, including the teen apparel sector, raise fears for the upcoming US holiday shopping season [NYT]

When brands might not collide after all: Europe to review Oracle's takeover of Sun. [WSJ]

Amazon and Google square off in court over book rights. [AP]

YouTube talks to Hollywood about streaming movies for a fee. [NYT]

Or, just use Yoostar to edit yourself into one of the classics. Co-star with Marilyn or Gable! [David Pogue]

A brandcameo with some shelf-life: Santa Barbara's wine region weathers the recession, thanks to the 2004 comedy "Sideways." [LAT]

iPhones strain AT&T's network, angering customers. [NYT]

Desperate dads invent apps to turn your iPhone into a kiddie distraction device. [LAT]

World Wildlife Fund ad comparing 9/11 with the Tsunami backfires. [Ad Age]

Gee, that was fast! Michael Jackson to be buried tonight. [MTV]