subject: Internet Retail Driving Force Of Holiday Sales [print this page] Despite the current economic conditions, online shopping is expected to be the retail industry's growth as shoppers are looking to save as much money as possible. This has forced online retailers to offer incentives to be competitive in this marketplace. In the past, research has shown that consumers will shop around for the retailers offering the lowest prices.
Online retail sales are expected to rise 8% this Holiday Season, according to Forrester Research Inc. The research firms expects sales in November and December to reach $44.7 billion, up from $41.4 billion a year ago. "Even as companies continue to struggle, the important take-away is that the Web is continuing to grow," says Forrester analyst Sucharita Mulpuru, who believes that the increasing growth in online sales will come at the expense of brick and mortar stores. "It's taking wallet share away from the rest of the retail world."
"We expect this behavior to continue this holiday season because, given the current state of the U.S. economy, 24 percent of online holiday buyers intend to try lower-cost alternatives to the brands they typically purchase," the report stated.
Shopping can be very time-consuming, along with the hassles of traffic, crowded product aisles, and long lines. Is it not surprising that online shopping has taken over as our most accessible consumer-friendly convenience. As more internet retail stores are offering free shipping, consumers are able to save time and money, with the added convenience of doing it at home. With the click of a button, shopping has never been easier.
In addition to competitive pricing, online stores are able to carry a bigger inventory of products than department stores and retail stores. This allows consumers to shop from a larger selection, with the added convenience of not having to leave their home. The trend towards online shopping has also provided consumer with more detailed product information, allowing them to feel good about making purchases online.
"We have already seen an increase in sales as consumers are starting their Holiday shopping early this year." says Cindy Soulios, owner of California Cozy online boutique. "Shoppers are doing more comparison shopping, and looking for the lowest prices along with services such as free shipping and personalization."
In this economy, consumers will continue to look for the best deals, and along with the convenience of online shopping, it is no surprise that internet retail sales will continue to be the driving force of Holiday sales.
