Sunday, November 24, 2002
Researchers expect to see online shopping grow 17 percent this year.
MINNEAPOLIS-ST. PAUL STAR TRIBUNE
Robb Empson used to be one of those last-minute holiday gift buyers, shopping the crowded malls with all the other procrastinators.
Not anymore. The 50-year-old Edina, Minn., man checked off his entire gift list two weeks ago -- shopping online.
Knowing he doesn't have to visit stores during the frenzied holiday season is a "wonderful feeling," said Empson, who has been an avid online shopper for several years. This year, he spent about $700 on a dozen holiday gifts from such electronic purveyors as Amazon.com and Target.com.
Roughly 60 million Americans will buy at least some of their gifts via their computers.
Jupiter Research predicts that U.S. Web shoppers will spend $13.1 billion this month and December, a 17 percent increase from last year.
Still, it's a small fraction of $209 billion in total holiday sales expected by the National Retail Federation, an industry trade group.
Familiarity
Internet shopping no longer is a novelty for many of the masses. And it might be even more attractive now with the slew of free shipping offers and other perks being touted by online retailers who hope to boost traffic in a holiday season marked by a tepid economy and shaky consumer confidence.
"Undoubtedly, you'll see online retailers gain share," this holiday season, given the convenience and cost-savings they can offer, said George Sutton, managing director at RBC Capital Markets in Minneapolis.
In fact, investors have been flocking to Internet retailing stocks -- betting the sector will be a bright spot this holiday season, said Sutton, who follows companies such as Amazon.com Inc. and eBay Inc.
According to a recent report by the GartnerG2 research firm, online consumers expect to spend an average of $235 online on gifts this year, and $800 total. That puts their holiday budgets about $100 higher than non-Web shoppers, the Stamford, Conn.-based group said.
Overall, Internet holiday sales grew 28 percent last year and 54 percent in 2000, according to Jupiter Research, based in Darien, Conn.
"The online retail channel is becoming mature," Jupiter senior analyst Ken Cassar said of the slower growth trend. Still, he predicts "fairly strong growth for the foreseeable future."
Consumers' views
Minnesota resident Kerrie Schmidt figures she'll use the Internet to buy a few more holiday gifts this year because she has grown more comfortable with Web buying.
"I'm not all that computer-savvy, but I do know how to shop online," the 38-year-old said.
However, Internet purchases will account for a small portion of the many gifts Schmidt plans to buy for her large extended family. There are things she dislikes about some Web sites, such as the fact that she couldn't include a message with a gift she bought recently at Bestbuy.com.
Other shoppers find more to like about Internet retailing. Jim Peet and his wife used to make their holiday gift purchases and let them sit around the house until the last minute. Then they would have to rush to Mail Boxes Etc. and face a hefty bill to ship them out of state in time for the holidays.
Now, he takes advantage of shipping offers such as the penny he paid to ship the stereo he bought recently from Sony.com. He said he won't begin shopping for the holidays until after Thanksgiving but will do much of his buying online.
Free shipping offers -- while often involving longer wait times -- do remove one of the last barriers that consumers feel toward shopping online, analysts said.
"This holiday season is going to be all about the free-shipping promotion," analyst Cassar said.