Blog: October 9, 2009 | Admin

EQUTE — Economists have some grim news about holiday sales, but it could be good news for internet retail.

The AP reported that the National Retail Federation, usually bullish about holiday sales, predicts a 1 percent decline in total sales to $437.6 billion for November and December combined. The projection from the world’s largest retail trade group comes amid forecasts that U.S. retailers saw a key measure of sales drop in September for the 13th month in a row compared with a year earlier.

The NRF is less optimistic this year than several other groups offering holiday sales forecasts.

“We just don’t see a sharp turnaround in consumer sentiment and spending until employment and income look a lot better,” said Rosalind Wells, chief economist at the National Retail Federation. “Shoppers are going to remain very frugal.”

There could be a silver lining, however, for online retailers.

A survey of 2,350 by Burst Media shows that more consumers will buy online, or at least comparison shop.

key-findings

Other big findings show what shoppers are concerned about.

Six out of ten (63.7%) online shoppers are concerned about credit card security when making a purchase online with more women (69.4%) fearing it than men (58%). Other areas of concern include shipping costs (54.5%), privacy of personal information (54.1%), product quality (46.3%), shipping issues/delays (37.1%), return policy (33.6%), and product availability (31.6%).

The research also showed what shoppers will likely buy online. Respondents said they use the internet to learn about computer equipment, gadgets, music players and home electronics. The majority of shoppers said they would still go to brick-and-mortar for things like furniture, jewelry clothing and cosmetics.

The most interesting finding is the fact that shoppers no longer see a definitive holiday shopping season. The typical Black Friday kickoff is no longer seen as the beginning, only 13.6 percent of respondents said they considered it the official kickoff.

This is a great reason to get sites running smooth as soon as possible and get the message out to shoppers. There will surely be a jump around Cyber Monday and Black Friday, but with more shoppers shopping online all the time, there is no reason to wait. These numbers are also good incentive to make deals and special offers prominent on the front page — if shoppers see a great deal, they’re more likely than ever to buy online.

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