Forrester: Economy will slow online holiday sales

(In this istockphoto.com file photo, a woman shops online)

A struggling economy will be a big reason why US online retail sales this holiday season will have the slowest growth to date, Forrester Research Inc., a Cambridge research company, said today.

Forrester projects that US online holiday spending will reach $44 billion, up 12 percent over last year. Many retailers would kill for a 12-percent holiday gain, but that figure is puny and disappointing in the context of the exponential growth that online retailers have often enjoyed as online shopping evolved into a mainstream option for most consumers.

Forrester said in a press release: "Although US consumers are pessimistic about the health of the economy, they expressed a marked interest in the ability of the Web to save them money. Forty-eight percent of consumers surveyed, compared with 41 percent in 2007, said that they can find the best values and deals online. Additionally, 36 percent of consumers said that they would be more likely to shop online due to high gas prices, compared with 22 percent who expressed the same sentiment last year. Forrester expects that the majority of holiday online sales will be driven by shoppers who have previously purchased online, rather than first time online buyers."

Forrester Research principal analyst Sucharita Mulpuru added in a statement, "This is going to be a very competitive online shopping season, so retailers should take immediate steps to bolster their customer retention strategies in order to ensure repeat purchases."
(By Chris Reidy, Globe staff)