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E-Commerce To See Double-Digit Growth
10:28 AM EST Tue. Feb. 03, 2009
Business-to-consumer e-commerce will continue its double-digit year-over-year growth rate for two main reasons, the research noted. First, sales are shifting away from traditional stores. The 2008 holiday shopping season hit a historic low: Many brick-and-mortar stores have filed for bankruptcy (Kaybee Toys, Circuit CIty) and others have instituted massive layoffs and store closings (Macy's, Office Depot).
Second, the report suggests that online shoppers are less sensitive to adverse economic conditions than the average U.S. consumer. Still, it noted, the deteriorating U.S. economy led to "tepid" online sales in 2008 as consumers cut back on all but those purchases considered essential. And, it states, online shoppers rarely admit to browsing, which can drive valuable incremental dollars during a shopping "trip."
This year's growth will come as a result of more affluent customers shifting their purchases from traditional retailers to online outlets. That, the report found, will outweigh decreases resulting from other customers stemming their spending overall.
The online channel will comprise 6 percent of total retail sales in 2009 and 2010, increasing to 7 percent and 8 percent in 2011 and 2012, respectively.
