Online Holiday Retail Sales to Hit $33 Billion

Cambridge, MA, October 17,  2007--Online retail sales in the U.S. from Thanksgiving to Christmas will reach $33 billion, a 21% increase over last year, according to Forrester Research, Inc.. The survey of 2,500 online consumers analyzed spending plans across eight retail categories.

Apparel and accessories will top holiday shopping lists — 80% of respondents said that they would purchase something in this category online during the upcoming holiday season.

A majority of consumers have a continued interest in free shipping promotions — 61% of online consumers said that they are more likely to shop online with a retailer that offers free shipping.

Fewer consumers are willing to pay for "frills" like gift wrap or overnight delivery this year — only 2% of consumers said they would pay for expedited delivery prior to the holiday season, down from 45% who said they would do so in 2006.

Gift cards promise to be a big winner during the 2007 holiday season — 18% of online consumers said that they plan to spend more on gift cards this year, compared with last year.

"Retailers should have an action plan in place for how best to take advantage of gift cards following Christmas and through January, which is known to be the most active redemption period," said Forrester Research principal analyst Sucharita Mulpuru. "Online retailers that are ready to capture those customers will likely be able to maintain relatively strong sales, in spite of the traditional Q1 seasonal dip."