Wall Street

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.

Online Stock Market Trading "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."

- 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.

Stock Investing Course 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.

Chicago Tribune February 11, 2007 Online shoe sales take bigger stride "Online shoe sales are projected to increase 22 percent in 2007, to $3.5 billion, compared with 18 percent for apparel sales online, commerce research firm. By 2011, online shoe sales are forecast to double to $5.8 billion.. InterActiveCorp., run by Hollywood magnate Barry Diller, based Shoebuy.com last year."

Stock Market Game 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.

Chicago Tribune February 11, 2007 Online shoe sales take bigger stride "Online shoe sales are projected to increase 22 percent in 2007, to $3.5 billion, compared with 18 percent for apparel sales online, commerce research firm. By 2011, online shoe sales are forecast to double to $5.8 billion.. InterActiveCorp., run by Hollywood magnate Barry Diller, based Bagsbuy.com last year."

Stock Investing Game 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.

Technological advances by the company have allowed for this new level of value adding in the highly competitive floral industry. According to Forrester Research, online floral sales are expected to reach $1.75 billion by 2008. During recent peak floral shipment periods, year floral sales growth, including a 25% increase in online flower purchases for 2006 Valentine¯ Day shipping period and a 16% increase this Mother¯ Day over the prior year.

Journal Prime Rate Street Wall 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.

More than 40 percent of Americans say they£l shop online this year, and Forrester Research predicts that online holiday spending will soar 27 percent this year to almost $145 billion. Whether you®e buying from an online retailer, auction site or travel agency, Visa and the Better Business Bureau (BBB) want you to keep these shopping tips top of mind.

Stock Market News Source: Forrester Research

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