Friday, January 07, 2000
Holiday spending eased via Internet
BY LISA BIANK FASIG
The Cincinnati Enquirer
When online retailers started stocking their warehouses with boatloads of merchandise last holiday season, they had online cruisers like Janice Bechtel in mind.
The Montgomery shopper estimates she spent $1,500 online for 1999 holiday gifts. And like millions of other shoppers, she increased the amount she spent at Internet stores from the previous year.
“I hate shopping in the malls,” said Mrs. Bechtel, 56. “I absolutely detest crowds.... You can't get around.”
But, she said: “I was really pleased with my online shopping experience this year.”
Mrs. Bechtel had enough company that Internet firms either raised or beat online shopping projections for last holiday season. Market research firm Forrester Research Inc. this week increased its five-week holiday forecast by 25 percent — to $5 billion. That is more than a threefold increase from 1998. America Online said shoppers doubled their spending at its sites to $2.5 billion from $1.2 billion in the 1998 holiday season.
“We've been having a lot of (e-tail) companies crossing the $100 million mark,” said David Cooperstein, an analyst at Forrester. “Part of it is the flush economy. Another rea son is the convenience factor.”
Mr. Cooperstein also agreed that because more homes and offices have computers and Internet access, the public is more comfortable with online operations.
Forrester raised its projections based on consumer research and reports by America Online, whose users represent 50 percent of the industry. Forrester had projected that Americans would spend $4 billion online from Thanksgiving to New Year's this year.
In the same period last year, Forrester said, consumers spent $1.5 billion. For all of 1999, online spending was expected to exceed $20 billion, vs. $8 billion in 1998.
Higher sales do not mean all online retailers met their target. Amazon.com warned investors Wednesday that fourth-quarter losses would widen because it overstocked for the holiday season — still, its sales in the quarter more than doubled to $650 million from $253 million a year ago. And Toysrus.com said in December that it would not be able to deliver as much as 5 percent of its orders by Christmas because of overwhelming demand.
But with an estimated 17 million households shopping online last year, people were definitely finding places to spend.
“I bought all the toys (online),” said shopper Jeannie Niebuhr, 34, of Eastgate. “At least 50 percent of my shopping I did on line, everything but the clothes.”
Developer pitches site to Nordstrom
Clinton fights cyber-terrorism
Holiday spending eased via Internet
Retailers had merry season
SDRC acquires two related firms for $12M
New-home sales fall, as prices climb 5.3%
New marketing firm speeds growth plan
TRISTATE BUSINESS SUMMARY
INDUSTRY NOTES: MANUFACTURING
PEOPLE ON THE MOVE
TRISTATE MARKET SPOTLIGHT
