Fri, Dec 30, 2011 - Page 10 News List

US holiday shopping gets big boost as online sales rocket

ONE-TIME SPLURGE?After three years of belt tightening, US consumers let loose with a burst of seasonal spending, much of it using credit cards

AFP, Washington

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 percent to 4 percent growth of sales in brick-and-mortar stores and shopping centers.

FASTER PACE

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

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

Unlike previous years when Internet sales have been bunched around special promotion dates — such as “Cyber Monday,” the Monday after Thanksgiving — sales have been spread fairly evenly this season, with several days topping the US$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 US$2.8 billion.

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

According to ICSC research, sales in shopping centers from early last month through Christmas were up about 3.3 percent from the previous year.

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

“These sales numbers have looked better than the economy as a whole,” the ICSC’s chief economist Michael Niemira said.

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 using credit cards.

better position

“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.

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, while 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.

This story has been viewed 2802 times.
TOP top