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Online retail sales still flourishing

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Even as many traditional retailers are reporting lower sales, online spending is expected to rise 17 percent this year, according to an annual survey released today.

The Associated Press reported that, excluding travel purchases, online retail sales are expected to grow to $204 billion this year, compared with $174.5 billion last year, according to a survey conducted by Forrester Research for Shop.org, the online division of the National Retail Federation. Though 17 percent growth would be less than the 21 percent increase recorded last year, industry officials attribute it to the maturing of the online retailing business, not a downturn in the economy. The biggest growth this year is in apparel, computer and automobile sales.

Meanwhile, U.S. retailers are expected to report on Thursday flat growth for same-store sales in March, according to the International Council of Shopping Centers. Many retailers have slowed store growth and closed shops as consumers have cut spending amid higher gas and food costs, a housing slump and weaker job market. The exception is discount retailers, which are benefiting from having lower prices.

Shoppers turning to the Internet for deals may not see them this year. According to the study, which surveyed 125 online retailers in February and March, only 35 percent said they would offer some type of shipping incentive this year, compared with 85 percent offering such deals in 2007.