Online Clicking Driving Retail Sales: Report
Consumers browsing and clicking online is expected to increase brick and mortar retail sales by a compounded annual growth rate of 12% over the next five years. This healthy growth of off-line-influenced sales will reach 40% of total U.S. retail sales by 2011, according to a new report from JupiterResearch.
E-sales will grow by 16% in 2007 to reach $116 billion. Over the next five years online retail will grow at 11% reaching $171 billion in 2011. Despite the slowing of growth in online buying, Web influenced off-line sales will grow at a slightly faster pace over the next five years, reinforcing the vast advertising and marketing value retailer Web sites present, JupiterResearch said.
“Online retail sales are maturing and the lion’s share of future growth will primarily come from existing buyers spending more in the online channel,” said Patti Freeman Evans, JupiterResearch senior analyst and lead author of the report, said in a statement. “Assuming growth continues in a similar trajectory over the coming decades, US online retail sales will plateau at 10% to 15% of total US retail sales, barring a dramatic change in the online shopping experience that promotes an inordinate spending shift among buyers.”
The key for retailers is to create clear, simple and convenient links to the off-line channels that persuade shoppers to stay with them as they cross channels, the research firm said.
