Here's a little statistical cheer for online retailers bracing themselves for what many have been predicting will be a dismal holiday sales season.
The latest online retail spending report released Tuesday by ComScore shows that consumers last weekend spent almost double what they spent on the corresponding weekend before Christmas last year. U.S. consumers online spent $677 million last weekend, December 20 and 21, compared to $341 million the weekend before Christmas in 2007, which was December 22 and 23.
It should be noted, however, that there are five fewer days this year between Thanksgiving and Christmas, making it harder to make perfect year-to-year comparisons. For example, the $677 million in sales last weekend--which was also the fourth weekend after Thanksgiving--is actually down 17 percent from last year's corresponding fourth weekend after Thanksgiving, December 15 and 16.
Whether you see the glass half full or half empty, the statistics suggest "that many consumers opted for the cozier confines of online shopping rather than having to brave the severe cold and snowstorms affecting much of the northern half of the country," ComScore Chairman Gian Fulgoni said in a statement. He added that the compressed shopping season probably resulted in some consumers buying online later than they did last year.
Regardless, the report is further evidence that holiday sales aren't a total disaster and might even be holding their own, which is no small feat in the throes of a recession. U.S. online spending to date this holiday season (from November 1 to December 21) totals $24.71 billion, down 1 percent from the corresponding timeframe last year.
Considering we're in the throes of a recession, online holiday sales appear to be generally holding their own.
(Credit: ComScore)Consumer spending on e-commerce sites grew just 1 percent during October compared with the same month a year ago, according to ComScore.
In fact, last month was the worst growth month for online retail spending since ComScore began keeping track in 2001.
Rising prices and unemployment rates, and the psychological impact of the chaos of the financial markets are to blame, according to ComScore Chairman Gian Fulgoni.
But the dip in spending can't be too much of a shock to those who watch ComScore's monthly reports carefully. The preceding six months featured declining growth rates--April saw 15 percent growth, and by August spending online had increased just 8 percent.
Spending has dropped off the most for households that make below $50,000 per year, according to ComScore's figures. From August to October this year, their spending dropped 3 percent compared with the same period last year. For households making between $50,000 and $100,000, their spending increased 1 percent. Households making more than $100,000 increased their spending during that time by 14 percent.
Retailers both online and off are fretting how the economic downturn will affect this year's holiday sales. E-commerce giants Amazon.com and eBay both offered dim holiday outlooks during their third-quarter earnings reports.
In response, earlier this month ComScore recommended that online retailers should seriously consider generous coupon offers and free shipping to encourage consumers to spend in the coming months.
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