Fifty-Five Percent of U.S. Small Business Owners Anticipate Strong Sales for Mother's Day in 2008, According to Constant Contact Survey

WALTHAM, Mass. (Business Wire EON) April 28, 2008 -- While U.S. small business owners' expectations for strong Mother's Day holiday sales have waned over last year's survey, many of them are, in fact, predicting higher sales in 2008. According to the survey, 44 percent of U.S. small business owners anticipate Mother's Day sales in 2008 will be higher than sales last year, while 34 percent anticipate sales to remain the same and 22 percent expect sales will be lower.

More Small Businesses Publicize Mother's Day Promotions

A notable 74 percent of surveyed U.S. small business owners are planning promotional offers for Mother's Day. Furthermore, a strong majority (88 percent) plan to reach out to their customers this year with special Mother's Day email marketing promotions in an effort to capture more business, similar to last year's 86 percent. Other marketing methods, including online marketing (24 percent), flyers (24 percent), direct mail (23 percent), and TV, radio, or newspaper advertising (21 percent), follow email marketing.

"Despite reports of curtailed consumer spending, most small businesses recognize the importance of Mother's Day and don't expect consumers to cut these purchases," said Gail Goodman, CEO of Constant Contact. "Many small businesses are seizing this opportunity to connect with the people who already know and trust their business - their current customers. In fact, our survey indicates that a majority of businesses plan to use cost-effective tools like email marketing to help their customers find meaningful Mother's Day gifts."

Economic Stimulus Payments Unlikely to Boost Sales, Say U.S. Small Business Owners

According to surveyed U.S. small businesses, a majority (62 percent) do not expect the economic stimulus payments, slated to be sent in May to more than 130 million households, to increase sales for their business. This figure is in line with other reports**, that indicate that a majority of consumers will elect to pay bills or buy necessities, rather than other discretionary purchases.

Nevertheless, mothers will be celebrated - according to the survey, mothers can expect to be on the receiving end of traditional Mother's Day gifts again this year. The most anticipated purchases are flowers (37 percent), followed closely by a meal at a restaurant (25 percent), a salon/spa appointment (21 percent), jewelry (13 percent), and clothing (4 percent). In addition, small businesses report that the majority of their customers (75 percent) typically spend $25-$75 each on Mother's Day gifts.

U.S. small businesses also continue to expect online sales to play a large role in this year's Mother's Day sales as more than half (63 percent) expect an increase in online purchases this year.

Below are sample questions from Constant Contact's 3rd Annual Mother's Day Outlook survey. The full results of the survey are available online: http://img.constantcontact.com/docs/pdf/Mothers_day_survey_FINAL.pdf

Do you anticipate a strong Mother's Day season in sales for your

 business?

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Yes                                55%

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No                                 45%

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Do you anticipate your Mother's Day sales to be higher or lower in

 2008 versus last year?

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Higher                             44%

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Lower                              22%

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Remain the same                    34%

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What do you think will be the most popular item during this year's

 Mother's Day season?

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Flowers                            37%

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Meal at a restaurant               25%

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Spa/salon appointment              21%

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Jewelry                            13%

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Clothing                           4%

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Do you feel that the U.S. tax stimulus refund being sent out in May

 will help increase sales for your business?

----------------------------------------------------------------------

Yes                                38%

----------------------------------------------------------------------

No                                 62%

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he 2008 U.S. Small Business Mother's Day Outlook survey was

conducted through targeted online distribution to U.S. small business

owners, who are current customers of Constant Contact, recording

results from more than 1,000 respondents. The survey was conducted

from March 29, 2008 through April 9, 2008.

¶   **PNC Economic Outlook survey: http://www.pnc.com/eos; H&R Block

Survey: http://www.hrblock.com/press/Article.jsp?articleid=1520

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