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Wednesday, November 21, 2007

Online shopping to kick into high gear

72 percent of Internet retailers plan to offer deals, survey says.
By Kristin McAllister
Black Friday sales account for about 15 percent annually of the country's total economy, but Cyber Monday is fast becoming a vital part of the high-octane holiday shopping weekend, according to online retail analysts.Independent technology and market research company Forrester Research Inc. anticipates online sales this holiday season to reach $33 billion, a 21 percent increase over last year and 12.3 percent of all Internet holiday shopping sales.

The online holiday shopping season kicks off every year during the Monday following Thanksgiving and continues to climb for three weeks until it peaks, usually mid-December. The National Retail Federation reports that 58.5 percent of consumers do their holiday shopping online to avoid crowded retailers."Clearly, more and more households own personal computers and, therefore, are involved in getting on the Internet and, consequently, doing business and buying things," said Jim Munch, Wright State University marketing department chairman. "And the challenge of higher oil prices is undoubtedly encouraging more of us to shop from home."

Recognizing that growing consumer market, 72 percent of online retailers will offer special deals on Cyber Monday, up from 43 percent two years ago, according to a new survey by Shop.org, an online retailers association. And a survey of 5,000 U.S. households this month by the Conference Board Consumer Research Center found that 38 percent of respondents who last year purchased Christmas gifts online were satisfied with their buying experience. "Consumers are ... willing to spend more than last year, though retailers can still expect a fair share of bargain hunters will be lining up for the traditional kickoff this Friday," said Lynn Franco, center director.

And while the office supply industry, such as Staples, Office Depot and Office Max, in 2006 was a $250 billion industry, it only had 12 percent total sales from online shopping. That's about to change, retail analysts say. Industry experts now project that within three years, online sales will account for 50 percent of the office supply products industry's total sales.

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