Online retail sales up 39% in '02

Computerworld - Online retail sales climbed an estimated 39% in the 2002 holiday season compared with 2001, but the nation's continuing economic malaise and the threat of war with Iraq apparently caused a last-minute slowdown in online sales during the week before Christmas, according to a Reston, Va.-based consumer research firm.
"At the very tail end -- the week or so leading up to Christmas -- we did see ... the growth rates slow quite a bit compared to last year," said Dan Hess, a vice president at comScore Networks Inc. In the 2001 holiday shopping season, there was a last-minute online spending surge that wasn't duplicated this year, he said.
Overall, comScore estimates that consumers spent $74 billion online shopping in 2002, up 39% over 2001. The total includes retail spending as well as spending for online travel accommodations.
In the fourth quarter of 2002, consumers spent about $13.8 billion online, 27% more than in the same period in 2001, according to comScore. Overall, online retail sales alone amounted to an estimated $43 billion in 2002, which is about 5% of the retail sales in brick-and-mortar stores.
Also higher in 2002 was the number of consumers shopping online, with about 10 million people per week shopping online in the fourth quarter -- a jump of 32% over 2001.
Experienced online shoppers also spent 37% more than in 2001, according to comScore. They also spent about 50% more than first-time online shoppers did. "They had a positive experience and then do it more often," Hess said.
The traditional mix of items bought online also changed in the recently ended holiday season, he said. Apparel sales increased at a brisk clip, while music CDs, books and consumer electronics -- all leading online sellers in the past -- had "lackluster" sales, he said.
Also rising in sales were home and garden items, small appliances and jewelry. "They're bellwethers [that show that] people are considering this is a place to buy a broad range of products," Hess said.
The figures from comScore are preliminary and could change somewhat once final tallies are available, he added.

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