Online Spending Down During Pre-Holiday Period: Study
E-commerce non-travel spending between Nov. 1 and 23 fell from $8.51 billion in 2007 to $8.19 billion in 2008, according to comScore, a digital measurement firm.
In addition to travel, the figures exclude sales via auctions and large corporate purchases.
“Despite the recent reprieve that plummeting gas prices have given American consumers, the depressed and volatile stock market, declining housing prices, inflation and the weak job market all represent dark clouds hanging over their heads this holiday shopping season,” said comScore chairman Gian Fulgoni in a statement.
Fulgoni continued, “With consumer confidence low and disposable income tight, the first weeks of November have been very disappointing, with online retail spending declining versus year ago. It’s also likely that some budget-conscious consumers are planning to wait to buy until later in the season to take advantage of retailers’ even more aggressive discounting.”
According to comScore, holiday online retail spending for the November – December period will be flat versus year ago, significantly lower than last year’s growth rate of 19% and below the retail e-commerce growth rate of 9% it has observed during the current year.
“Assuming the stock market doesn’t deteriorate materially during the season and that there is no apocalyptic news of major financial institutions, manufacturers or retailers failing, we should see online spending growth inch back towards positive as we get deeper into the season,” Fulgoni added. “However, if there is any more significant bad news just over the horizon, all bets are off.”
ComScore also surveyed consumers to determine what they are doing to cut costs during the holiday season. The results follow.
General shopping
Buying fewer gifts — 47%
Buying less expensive gifts — 46%
Using coupons I receive from my newspaper or via mail — 37%
Spending more time searching for deals in stores — 32%
Shopping early in the season to take advantage of sales and/or discounts — 22%
Shopping later in the season to take advantage of price reductions — 19%
Online Shopping
Shopping online to take advantage of free shipping, no tax, etc. — 39%
Spending more time researching deals online –37%
Using online coupons or coupons I receive via email — 31%
Using comparison shopping engines to find the best deals — 25%
Shop online auction sites — 21%
Shop online classifieds — 8%
Using deal of the day sites — 8%
