Investments

Forrester Research: 2005 Online Holiday Sales To Hit $18 Billion

Cambridge, Mass., October 31, 2005 . . . Despite concerns about consumer confidence, US online retail sales this holiday season will hit $18 billion, a 25 percent increase over last year, according to Forrester Research, Inc. (Nasdaq: FORR).
Even if economic worries dampen consumer spending, simple math accounts for a likely healthy increase in online sales: 2.5 million new households are expected to begin shopping online in 2005. In addition, a greater number of retailers will use the traditional lure of free shipping to entice consumers to spend more, albeit with minimum spending thresholds to ensure profitability. Last year, 25 percent of online holiday shoppers indicated that they purchased more online to avoid shipping charges.

Bank Of America Investment "This is shaping up as a good not great holiday season," says Carrie A. Johnson, vice president and research director at Forrester Research. "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."

Amsterdam, November 10, 2004 . . . According to Forrester Research, Europe will outpace the US in online holiday sales this year. It estimates that eCommerce during the holiday season in Western Europe will increase by 44% over last year, bringing in 13 billion compared with 10 billion ($13 billion) in the US. According to Forrester, this growth will be driven by more affluent online shoppers, an eCommerce push by traditional retailers, and the aggressive promotion of online stores.

Investment Opportunity As they did last year, brick-and-mortar retailers nervous about soft consumer spending will use their Web sites to drive in-store traffic. One example of this is Circuit City's 24/24 promotion, which 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.

- by as much as 86% in 2002, says Chief Executive Officer Jon Nordmark. ever holiday season for Internet retail sales. Online holiday retail sales in the U.S. are likely to surge to $26 billion this year, up 18% from a year ago, according to Jupiter Research, a unit of Jupitermedia Corp. digit increases. Meanwhile, the National Retail Federation projects total holiday retail sales will increase to $435.3 billion this year, up 5% from a year ago.

Banc Of America Investment What categories will see the strongest growth online this holiday? Traditional items such as consumer electronics and toys, but also apparel, which is surging as more women shop online and retailers offer increasingly sophisticated tools to illustrate style and fit.

Forrester Research is THE place to look for research on the Web. + US online retail sales, $172.4 billion + Predicted US online retail sales, $328.6 billion + 55 million + 88%.

Banking Investment A note about this forecast: Forrester defines the holiday shopping season as the period between Thanksgiving and Christmas. "US Online Holiday Sales Bring Good Tidings To Retailers" is available to WholeView 2 clients and can be found at www.forrester.com.

Analysts are forecasting that IAC will ride the wave of Internet commerce, which is expected to soar from $78 billion in 2002 to $149 billion in 2005, according to Forrester Research . With an eclectic combination of businesses, ranging from the leading online travel company Expedia to the Net dating service Match.com, InterActiveCorp's revenues are on track to surge 34% this year, to $6. commerce giants Yahoo!, eBay and Amazon.com.

Investment Solution Strategic Forrester Research (Nasdaq: FORR) is an independent technology and market research company that provides pragmatic and forward-thinking advice about technology's impact on business and consumers. For 22 years, Forrester has been a thought leader and trusted advisor, helping global clients lead in their markets through its research, consulting, events, and peer-to-peer executive programs. For more information, visit www.forrester.com.

* In the UK, the Internet has become a key battleground for retails sales, ups as early as September. Last year, the UK contributed 36% of total online holiday sales in Europe. This year, with the highest penetration of online shoppers in Europe, the UK will generate 4.2 billion (3 billion) in online holiday sales a third of all online sales in Europe.

Investment Banking Services Source: Forrester Research

[ Comment, Edit or Article Submission ]