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Americans to spend almost $100bn online this year
That's a lot of transactions

By silicon.com

Published: Friday 16 May 2003

US retail sales on the internet are expected to climb by 26 per cent to about $96bn this year, according to a new study.

The Shop.org and Forrester Research survey of more than 130 retailers found that online retail sales jumped 48 per cent to $76bn last year. The sum was about 3.6 per cent of total US retail sales.

Various UK figures produced towards the end of last year showed a population equally if not more inclined to purchase online.

For 2003, online sales are expected to account for 4.5 per cent of total US retail sales.

"In a time when the retail industry has been extremely challenged, it is encouraging to see the online channel continue to grow, and even better, start to make money," said Kate Delhagen, consumer markets research director with Forrester.

"Last year was about breaking even. 2003 is about generating profits," Delhagen said.

Last year, online retailers collectively broke even, versus a decline of 6 per cent in 2001.

For so-called clicks-and-mortar retailers with both online and offline stores, the study found 46 per cent of customers who shopped online also purchased goods at stores, while 17 per cent of offline customers also shopped on company websites.

Sears, Roebuck and Co, a major online retailer through its Lands' End and Sears websites, said last week its internet division was profitable in 2002, a year earlier than it expected.

Shop.org is the online retailing division of the National Retail Federation, a trade group.