|  |
Online Holiday Spending Surges Beyond Expectations, Driving E-Commerce to Record Annual Sales of $117 Billion
comScore Networks released holiday
and annual spending figures for full year 2004. Online consumer retail spending
grew by an impressive 29 percent compared to the 2003 season, exceeding comScore’s
initial expectation of 23 to 26 percent growth. Online travel spending generated
an additional $7.8 billion in November and December. All told, total online
spending in 2004 grew by 26 percent to a record level of more than $117 billion.
|
Online Consumer Spending
Excludes Auctions and Large Corporate Purchases
Source: comScore Networks
|
| |
2003
(in billions)
|
2004
(in billions) |
% Chg
2004 vs. 2003
|
| Holiday Season (Nov & Dec) |
|
|
|
| Non-Travel (Retail) |
$12.3 |
$15.8 |
29% |
| Travel |
$6.0 |
$7.8 |
28% |
| Total |
$18.3 |
$23.6 |
28% |
| |
|
|
|
| Full Year |
|
|
|
| Non-Travel (Retail) |
$52.9 |
$66.5 |
26% |
| Travel |
$40.4 |
$50.9 |
26% |
| Total |
$93.2 |
$117.4 |
26% |
A mid-season analysis conducted by comScore revealed that a group of 25 multi-channel
retailers, or those conducting sales both online and offline, posted an aggregate
year-over-year growth rate that was approximately twice that of online retail
in total.
“While it’s clear that a broad range of online merchants saw a strong
season, multi-channel retailers were standouts this year,” said Dan Hess,
senior vice president of industry analysis, comScore Networks. “Many of
the nation’s leading retail brands flexed their muscle this season, with
strategies including faster delivery options, significant site redesigns and
effective cross-channel promotions.”
A comScore Media Metrix analysis of online traffic to retail sites revealed
that six of the top 15 gaining Retail properties over the holiday season were
the online storefronts of traditional offline department stores, such as Home
Depot, Neiman Marcus and Wal-Mart. Blockbuster’s launch of a DVD delivery
service has boosted traffic nearly fourfold since 2003. Cellular phone and service
related sites LetsTalk.com, AttWireless.com and T-Mobile.com each posted traffic
gains of more than 80 percent over last year, supported by interest in new cell
phones and rate plans, and increased cross-shopping since the introduction of
wireless number portability at the end of 2003.
Top Gaining Retail Properties
Average Weekly Unique Visitors (000)
Weeks Ending 11/7/04 – 12/26/04
vs. Corresponding Weeks in 2003
Total U.S. Home, Work, and University Users
Source: comScore Media Metrix |
| |
2003
|
2004
|
% Chg
2004 vs. 2003
|
Total Internet Population
|
125,728 |
129,281 |
3% |
| Retail Category |
82,955 |
86,274 |
4% |
| BLOCKBUSTER.COM |
593 |
2,888 |
387% |
| LETSTALK.COM |
340 |
1,005 |
196% |
| OVERSTOCK.COM |
2,991 |
5,597 |
87% |
| ATTWIRELESS.COM |
1,887 |
3,439 |
82% |
| EBATES.COM |
791 |
1,441 |
82% |
| T-MOBILE.COM |
935 |
1,701 |
82% |
| ZAPPOS.COM |
460 |
798 |
73% |
| The Home Depot, Inc. |
1,304 |
2,239 |
72% |
| NEIMANMARCUS.COM |
378 |
644 |
71% |
| PEOPLEPC.COM |
1,385 |
2,333 |
68% |
| Wal-Mart |
6,276 |
10,546 |
68% |
| NORDSTROM.COM |
675 |
1,121 |
66% |
| May Department Stores |
715 |
1,136 |
59% |
| Shopzilla Sites |
3,015 |
4,782 |
59% |
| Target Corporation |
4,269 |
6,697 |
57% |
“Throughout the year, we saw strength in product categories such as Home
& Garden, Flowers, Gifts & Greetings, Apparel & Accessories and
Jewelry & Watches, confirming the continued diversification of the online
shopping basket,” continued Mr. Hess.
Late Season Acceleration Transformed the Season
Unprecedented strength in the last two full weeks of December was perhaps the
most interesting aspect of the 2004 holiday shopping season. Through mid-December,
holiday season growth was tracking at 23 percent. Growth accelerated dramatically
during the weeks ending December 19 and December 26, with sales growing by 57
and 53 percent, respectively.
The late surge, which resulted in the holiday season’s greater than expected
growth, was driven by a number of factors including:
- Local fulfillment: Retailers providing the ability to buy online
and pick up in-store, as well as those offering local delivery, were able
to offer consumers last-minute buying options as late as the day before Christmas.
- Later shipping deadlines: Operational improvements at major retailers
allowed consumers to buy late in the week before Christmas and still have
products delivered by Christmas Eve using standard shipping.
- Gift cards: Gift cards have become an increasingly popular gift option,
both online and offline. And because these gifts can often be delivered instantly
via e-mail, they were particularly popular during the week of Christmas.
- Offline product shortages: Widely reported shortages of popular gift
products, such as Apple’s iPod, resulted in increased last-minute online
purchasing of these products.
- Increased broadband access from home: comScore research has historically
proven that consumers using broadband connections are more likely to make
online purchases than their dial-up counterparts. As a result, in the 2004
holiday season, the year-over-year growth rate of online shopping from home
was significantly higher than that generated by workplace buyers.
01/2005, comScore Networks
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