Christmas online retail and travel sales in the US will reach approximately $11.9 billion – an 11% rise year on year – according to a report released yesterday by Jupiter Media Metrix (JMM).
JMM says that whilst growth in online shopping is slower this holiday season than last, the number of people making purchases is forecast to grow from 36 million in 2000 to 46 million this year. Jupiter also predicts that the percentage of consumers’ holiday budgets allocated to online spending will be greater this year.
The figures from Jupiter are less optimistic than similar forecasts made by Nielsen//NetRatings earlier last week (see Forecasts). NetRatings predicts that in December alone the US online spend will reach $9.9 billion. Jupiter’s $11.9 billion covers both November and December. Similarly, NetRatings expects more than 106 million customers in December, whilst JMM has 46 million across the two months leading up to Christmas.
“As traditional retailers brace for a holiday shopping season fraught with uncertainty, online retailers are facing quite the opposite – the first fairly predictable holiday season,” said Ken Cassar, Jupiter senior analyst. “The attacks of September 11 will in fact have a net zero impact on online retailers. Because fewer Americans will travel via air this year, and those that do will be less likely to carry armloads of packages through tight airport security, there’s an increased likelihood that consumers will buy from online and catalogue retailers. However, any benefits that this creates will be offset by the negative economic impact of the attacks.”
The research also showed that only 14% of those planning to buy gifts online intend to spend less than 10% of their budget via the internet; this figure was 18% in 2000 and 61% in 1999.
There will be more women shopping online (53%) than men during this holiday season and they will spend more as a group for the first time, according to Jupiter’s analysts.
