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Happy(ish) Holidays for Online Retail
Online retail sales for the 2004 US holiday season, defined as the period between Thanksgiving and Christmas, will increase substantially over 2003 - by 20% to $13.2 billion, according to Forrester. However, this is slower growth than the previous year - 2003 was up 31% on 2002.
The report, 'Online Holiday Sales 2004: Proceed With Caution', predicts only a 'Moderately Merry' season for online shopping, which it says is becoming more 'mainstream'. Retailers' efforts to boost in-store sales during the 2004 holiday season will be a major factor in online's decreasing year-on-year growth.
'As online shopping becomes more mainstream, online growth will begin to mimic lukewarm offline sales' according to Forrester Research Senior Analyst, Carrie A. Johnson. 'And, because stores are the channel most at risk of missing sales forecasts this year, retailers will scale back online promotions, such as free shipping, and will promote large in-store discounts as a way to drive customers to stores. As a result, the benefits of in-store shopping may outweigh the convenience of shopping online this year'.
The company is online at www.forrester.com
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