US online retail sales to rise in Q4 2009?
The growth rate represents an increase from 2008, when, on the heels of the worst of the global financial crisis, online holiday retail sales in the US grew just five percent. Forrester defines the holiday shopping season as the months of November and December.
According to results of Shop.org’s eHoliday Study, conducted by BIGresearch, shoppers will see changes in retail marketing and promotions this holiday season in response to economic uncertainty. The economy is not only impacting shoppers, it’s affecting online retailers, too. While online growth is expected to slow this holiday season, it remains a bright spot in retail.
Online retailers are also compensating for the economy by making operational changes to help them protect their profits. According to the survey, 41.4 percent of retailers have scaled back on inventory levels and 22.9 percent have hired fewer people in their stores.
According to professional services firm BDO Seidman, US retailers expect both overall sales and comparable store sales to increase by 2.6 percent and 1.4 percent, respectively, for the 2009 holiday season.
Sucharita Mulpuru, vice president and principal analyst at Forrester Research, said: “Despite the lingering effects of the recession, the online space remains the retail industry’s growth engine. What’s different this holiday from past years is that online retailers will manage to the bottom line, which will change some of the tactics they have employed in the past.”
- Social media to play major role.
- Online retailers look social networking sites as prospective.
- Betting closes on December 31, 2009.