Holiday Shoppers Online in Droves; Dislike Crowded Stores

Online consumers spent $8.8 billion overall, excluding travel, in November, a 19% jump over the $7.4 billion one year ago.

Adult consumers spent the most on apparel and clothing totaling $1.5 billion, according to the 2004 Goldman Sachs & Co., Harris Interactive and Nielsen//NetRatings’ Holiday eSpending Report. Toys and video game hardware and software ranked second with $1 billion, while the video/DVD category followed closely behind with $882 million. The books and music categories rounded out the top five with $621 million and $481 million respectively.

Toys and video games saw the highest growth rate, at 43% over last year. The video/DVDs and music categories jumped 39% and 32% respectively.

“We remain enthusiastic about the start of this holiday season, as several categories saw substantial revenue increases,” said Heather Dougherty, senior retail analyst, Nielsen//NetRatings. “The growth in 2004 holiday revenue suggests that consumers are shifting more dollars to the Internet this season.”

Another point of interest is that 17% of consumers said they had already finished their holiday shopping. Some 48% said that they have started but not finished, while 35% reported that they had not started.

Consumers gave a number of reasons for choosing to buy online. Some 36% said prices were lower online, 34% reported a wider selection was available and 33% said they preferred the Internet to the crowds in stores.

“Tenured online shoppers continue to flock to the Internet as sites become more user friendly, and retailers have learned the art of good customer service and creating savvy online marketing strategies,” Dougherty said.