Online Spending Growth To Slow Down This Year

Cambridge, MA, April 8, 2008--Online spending is expected to increase 17 percent this year, according to an annual survey by research firm Forrester Research for Shop.org, an arm of the National Retail Federation.

Retail sales online, not counting travel purchases, are expected to grow to $204 billion in 2008 from $174.5 billion last year, propelled by sales of clothes, computers and autos.

The 2008 projection is below the 21 percent increase last year, but industry officials say the fall off is because the industry is maturing.

E-commerce "is clearly the bright spot in retailing," said Scott Silverman, executive director of Shop.org.

The upbeat report contrasts with the outlook for many brick and mortar retailers, which have seen the effects of a softening economy and a weaker job market.

According to Forrester, two kinds of shoppers are responsible for the Web growth. First are price sensitive shoppers and second are affluent shoppers who like the convenience and selection.