Holiday shopping online rockets in US

Dec 28, 2011 by Paul Handley
US consumers turned in record levels to the Internet for holiday shopping this year, further boosting online sellers' share of the huge national retail pie.

US consumers turned in record levels to the Internet for holiday shopping this year, further boosting online sellers' share of the huge national retail pie.

Shopping via the Internet in the seven weeks before Christmas jumped 15 percent over a year earlier, according to market analysts ComScore.

That bests the estimated 3-4 percent growth of sales in brick-and-mortar stores and shopping centers.

More shopping takes place in physical stores, but the comparative pace of growth underscores the threat pose.

Consumers polled by the International Council of Shopping Centers (ICSC) said that they were doing slightly more than one-third of their gift shopping online this year, and just under two-thirds in the stores.

"Holiday e-commerce spending has remained strong throughout the season, and we have now reached a record $35 billion... for the season-to-date," ComScore chairman Gian Fulgoni said in a statement Wednesday.

Unlike previous years when Internet sales have been bunched around special promotion dates -- such as "", the Monday after Thanksgiving -- sales have been spread fairly evenly this season, with several days topping the $1 billion mark, according to the company.

Even in the week before Christmas, when shoppers flock to traditional stores for last-minute gifts, online sales were at about $2.8 billion.

Still, brick-and-mortar shop sales have also shown strength, pleasing retailers worried about the weakness of the economy.

According to ICSC research, sales in centers from early November through Christmas were up about 3.3 percent from a year before.

Other storefront retail groups project sales rising 3.5-4 percent.

"These sales numbers have looked better than the economy as a whole," said the ICSC's Michael Niemira.

Consumers have spent the past three years tightening their pocketbooks, but in recent months have let loose with a burst of spending, much of it via credit cards.

"They are in a better position to take on a little more debt," Niemira said.

With greater overhead costs, traditional stores have found it tough to compete with online merchants, especially in an economic climate where Americans pinch every penny they can.

Hit by tough competition, Sears announced on Tuesday that it would shut between 100 and 120 stores in an effort to save costs after a plunge in holiday sales.

Online sales giant Amazon outraged many by encouraging shoppers to go to stores, check and report the prices via a cell phone app, to receive a five percent discount on the same item from its own store.

Big-box electronics retailer Best Buy was forced to boost its own online sales as well as slash prices as it struggles with shoppers who view the products in its stores but then buy them more cheaply from Internet vendors.

Storefront retailers have also stepped up their campaign to have online competitors collect local tax, the exemption from which gives them a pricing advantage in many states.

Explore further: Research looks at how a box office success can translate internationally

add to favorites email to friend print save as pdf

Related Stories

US Cyber Monday spending hits new high

Nov 30, 2011

US online shopping hit a record high on Cyber Monday with people racking up $1.25 billion worth of purchases on the Internet, according to comScore.

Cyber Monday sales reach record levels

Dec 05, 2011

American consumers spent more than a billion dollars a day last week during a three-day online sales period, which started with "Cyber Monday," a monitoring firm reported.

Recommended for you

Pandora posts in-line 1Q loss, upbeat sales

9 hours ago

(AP)—Internet radio company Pandora reported higher-than-expected revenue in the latest quarter, with losses in line with analysts' forecasts, as the number of subscribers who pay for ad-free listening rose above 2.5 million.

Samsung sells more than 10 mn Galaxy S4 smartphones

21 hours ago

South Korea's Samsung Electronics said Thursday its latest flagship Galaxy S4 had become its fastest selling smartphone to date, topping 10 million units globally less than a month after its debut.

User comments : 0

More news stories

Solar Kettle allows for boiling water off the grid

(Phys.org) —A company called Contemporary Energy has unveiled a new device it calls the Solar Kettle. It looks very much like a normal coffee thermos, but has flaps on one side that open to allow for collecting ...

Google Drive sports new view and scan enhancements

(Phys.org) —Google Drive has a new look and functions. The makeover in Google Drive features scanning and interface enhancements that put the user into "card" mode. The enhancements make it easy for the ...

Controlling mood through the motions of mitochondria

(Medical Xpress)—Regulating the distribution of power in neurons is done by a system that makes the national electric grid look simple by comparison. Each neuron has several thousand mitochondria confined ...

A hidden population of exotic neutron stars

(Phys.org) —Magnetars – the dense remains of dead stars that erupt sporadically with bursts of high-energy radiation - are some of the most extreme objects known in the Universe. A major campaign using ...

A quantum simulator for magnetic materials

Physicists understand perfectly well why a fridge magnet sticks to certain metallic surfaces. But there are more exotic forms of magnetism whose properties remain unclear, despite decades of intense research. ...