eCommerce - Consumers Are Finishing It Up on the Web

12/16/2008

This seems to be the sentiment of holiday shoppers this year. A recent survey by the National Retail Federation showed that a bit more than 40% of consumers planned to finish up their holiday shopping by buying online. This is an increase of more than 5% from last year.

When you consider that shoppers have completed 10% less of their shopping as they had last year this time, online merchants could very well be the winner this holiday season – if shoppers do as they say.

Over 41 million consumers haven’t even started shopping. That’s six million more than those who hadn’t started at this time last year. Eight percent of shoppers surveyed said that they had completed their shopping. Last year this time, almost 12% (11.7%) had finished.

The x factor is whether or not those who haven’t started plan to do any at all – a real worry for merchants considering the economic times. Merchants realize the very real possibility that many consumers will be buying less. Brad Anderson, Vice Chairman and CEO of Best Buy, said that the last 90 days had been some of the most difficult the company has ever faced. They’re not the only ones.

A Goldman Sachs sales index report and the International Council of Shopping Centers report underscored the difficulties Best Buy said they’re having. Sales for the week ending December 13 decreased by 0.4% compared to the same week last year.

Other Findings by the National Retail Federation Report

Discount Stores: 43% of consumers reported that they planned to shop at discount stores to complete their holiday shopping.

Department Stores: Almost the same amount (42.5%) said that they were going to shop at department stores.

Paying Cash: 66% of shoppers plan to pay with cash (debit cards, checks, etc.). This is a slight increase over last year, where 64.5% reported they planned to pay in this manner.

Gift Card Purchases Decline: Gift cards are not as popular this year as last. Only 24% of shoppers have bought gift cards this year. Last year, 30% had done so by this time.

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