DMA Reports Increased Internet and Catalog Holiday Sales

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The Direct Marketing Association
(DMA) today released a white paper on holiday shopping reporting the
average combined Internet and catalog holiday sales are 8.3 percent
higher than they were during the same period in 2005.

"We are seeing a healthier year than we did during the 2005 holiday
season, which saw a 7.5 percent increase over 2004," said Anna
Chernis, senior research manager for DMA. "For the holiday season to
date this year, online sales have increased by 11.3 percent while
catalog sales have increased by 2.2 percent." DMA maintains that
catalogs boost interactive marketing efforts, explaining that adding
print mail to an interactive marketing campaign lifts revenue by an
additional 20%.

Approximately two-thirds (60.0 percent) of the marketers surveyed are
experiencing combined catalog and Internet holiday sales that are higher
than those for the same period in 2005. That is down slightly from 64.3
percent in DMA’s 2005 holiday survey.

DMA’s survey also found that approximately three quarters (72.0
percent) of those surveyed marketers report that their Internet sales
were higher than for the same timeframe last year. A third of catalog
sellers report 2006 holiday sales that are higher than they were for the
same period in 2005. Both of these showings are comparable to last
year’s survey.

Only 12.7 percent of marketers report that their overall holiday
catalog and Internet sales are down from last year, while last holiday
season this percent was much higher (23.8 percent). While a third (32.7
percent) of catalog seller indicated that their holiday sales to date
were down from 2005, only 7.3 percent said their Internet sales had
declined vis-à-vis last year.

Holiday Shopping at a Glance:

With the holiday shopping season underway, Americans are flocking to
catalogs, the Web, and retail stores to find items on their holiday gift
lists. DMA provides the following statistics about how much people are
spending, what they are buying, and how they will do their shopping this
holiday season.

Who is buying?

· More than two-thirds of Americans * 68 percent * shop from
home, buying from catalogs, over the Internet, over the phone, or
through the mail.

· Seventy-two percent of women shop from the home or office,
compared to 63 percent of men.

How much will they spend?

· American adults plan to spend an average of $1,577 per person on
holiday gifts in 2006.

· Men plan to spend $1,788 on gifts, while women plan to spend
$1,318.

· Americans plan to spend an average of $203 on apparel gifts this
holiday season. Other popular gifts include food ($240),
electronics/computers 
    ($192), general gifts ($201), toys and games ($129),
home décor or furniture ($125), books/music/videos ($99), sporting goods
($69), tickets for
   sports/entertainment ($65), pet supplies ($46), flowers
($27), and gardening supplies ($34).

· Consumers and businesses will spend $144 billion on catalog
purchases in 2006, an increase from $134 billion last year.

· The Web will generate nearly $339 billion in sales of all
products and services in 2006, up from $275 billion in 2005.

When do they shop?

· Fourteen percent of shoppers planned to buy all of their holiday
gifts before Thanksgiving.

· An additional 32 percent of shoppers will finish their gift
buying two weeks before the holiday. Forty-five percent wait until the
final week to
    complete their shopping, with 23 percent finishing the
day before the holiday.

· Men are more likely to procrastinate, with 48 percent finishing
their shopping the final week compared to 43 percent of women.

Why do they shop from home or office?

· Seventy percent of shoppers cite convenience as the reason they
shop via catalogs, the Internet, mail, or phone.

· Other reasons for shopping from home or office include variety
(50 percent), to save money (43 percent), and customer service (27
percent).

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