Consumers Plan to Spend Slightly More Online

Consumers Plan to Spend Slightly More Online
November 17, 2008

Consumers intend to spend less in stores this holiday season than last year, but slightly more online, according to a The Conference Board and TNS report. The Consumer Internet Barometer, a quarterly report produced by The Conference Board and TNS, surveys 10,000 households across the country and tracks who's doing what on the Internet. "Free shipping, exclusive online deals, coupons and discounts are among the incentives consumers will be expecting this season," said Lynn Franco, director of The Conference Board Consumer Research Center. The report found that bargain hunting will remain the driving force behind online sales. Online households planning to spend more than $500 in stores declined to 16 percent from 21 percent last year. Those planning to spend more than $500 online rose to 5 percent from 4 percent last season. Those planning to spend between $100 and $499 in stores declined to 57 percent from 61 percent last year, while those planning to spend that amount online edged up to 36 percent from 35 percent last year. Online households planning to spend less than $100 in stores increased to 22 percent from 16 percent last year. Those planning to spend that amount online rose to 32 percent from 29 percent. Online sales across retail channels are forecast to grow 9 percent this holiday season, and TNS Retail Forward forecasts online sales to reach $42.5 billion in the fourth quarter, up $3.5 billion from last year. This holiday season, books, clothes, movies and toys will be the most popular items on consumers' Internet shopping lists. The most preferred shopping sites are those operated by retail store and catalog operators, such as Walmart.com or BestBuy.com, followed by online retailers such as Amazon.com and online auction sites such as eBay.com.