RESTON ? Consumer spending on non travel goods at U.S. Internet sites will exceed $19 billion during the November-December Holiday shopping season, a 24 percent increase from 2004, comScore Networks announced Monday.
“Expectations across all channels for this holiday season have been dampened slightly by high gas prices and wavering consumer confidence,” said Gian Fulgoni, Chairman and Co-Founder of comScore Networks. “However, e-commerce will remain strong as consumers continue to shift more of their holiday spending to the online channel because of the Web’s convenience and the savings available through its price comparison capabilities – not to mention the ability for consumers to save on fuel costs by cutting back on the need to drive to retail stores.”
Success of Traditional Retail Categories Online Indicates Consumer Comfort
“The strong growth of e-commerce in traditionally offline categories such as Apparel & Accessories, Home & Garden, and Jewelry & Watches is a clear indicator that channel switching continues,” Fulgoni said. “Consumer-focused initiatives such as in-store pick-up, free shipping and hassle-free returns have helped merchants convince consumers to consider shopping in a wider array of categories online.”
Comparison Shopping Sites Grow As Consumers Search for Lower Prices
More than ever, consumers turn to both comparison shopping sites and traditional search engines to help them find lower prices or locate difficult-to-find products. Comparison shopping sites represent one of the fastest growing categories online, attracting more than 54.7 million visitors in October, an impressive 52-percent increase compared to a year ago. Previous comScore research has shown that online shoppers are highly likely to turn to comparison shopping engines as part of their research process before buying. For example, comScore found that 90 percent of those who purchased consumer electronics online during the first quarter of 2005 also visited a comparison shopping site during that same period.
“As consumers have gained online shopping experience in recent years, they have become increasingly open to buying from a large range of merchants, including familiar offline names, online auctions, and both large and small online-only stores,” said Fulgoni said. “Comparison shopping and Web search engines not only provide consumers with an efficient means for navigating this complex shopping environment, but also cause online retailers to engage in more competitive pricing.”
Familiar Multi-Channel Retailers Will Post Strong Results Again this Year
During last year’s holiday season, comScore found that familiar names in offline retail, such as Wal-Mart, Target and Best Buy, grew significantly more than online-only merchants. Driven by strong brands, significant online/offline promotions and in-store pick-up and returns, multi-channel retailers will likely outpace many of their online-only competitors again this year. In October 2005, three of the top five most visited retail Web sites were multi-channel retailers, including Wal-Mart, Target Corporation, and Apple Computer.
“Pure online brands will continue to do well this holiday season,” Fulgoni said. “But multi-channel retailers will once again post the highest overall growth in online sales as newer online shoppers turn to the brands they trust, and consumers recognize the benefits of in-store service, including post-holiday returns.”
