Consumers are expected to shop online this holiday season in record numbers with e-retail sales projected to hit $18 billion, a 25% jump over last year.
Some 2.5 million new households are expected to begin shopping online this year, according to Forrester Research, Inc. And more retailers will use such promotional enticements as free shipping to get consumers to spend more. Last year, 25% of online holiday shoppers bought more online to avoid shipping charges, Forrester Research said.
“This is shaping up as a good— great— season,” said Carrie A. Johnson, VP and research director at Forrester Research, in a statement. “The mainstreaming of the Web means that if offline retail sales suffer, online sales do as well. The average online consumer is no longer insulated from broader economic concerns such as volatile energy prices.”
Online merchants will use the Web to drive consumers to brick-and-mortar stores. Forrester cited Circuit City’s 24/24 promotion as an example. The retailer guarantees in-store pickup of an online order within 24 minutes with the promise of a $24 gift card if the order is not met.
Consumer electronics and toys will be top shopping categories showing strong growth this holiday season. Apparel will also show strong results as more women go to the Web to shop using sophisticated tools such as virtual models to see style and fit, Forrester Research said.
Forrester Research defines the holiday shopping season as the time frame between Thanksgiving and Christmas.
