Survey: Internet to Influence One in Four Holiday

Washington, DC, October 30, 2006--From browsing to buying, the Internet will play a larger role than ever in holiday shopping this year, according to a new survey conducted for the National Retail Federation by BIGresearch. Shoppers, who are expected to spend $791.10 each this year on holiday merchandise, said they will use the Internet for an average of one-fourth (28.9%) of their shopping. “While many shoppers plan to purchase holiday gifts online this year, others are using the Internet to look for gift ideas, research products and compare prices before heading to the store,” said Scott Silverman, Executive Director of Shop.org, the online retail division of NRF. “Retailers’ ongoing efforts to make their stores and websites work hand-in-hand will create more sales and happier customers.” Though nearly half (47.1%) of consumers plan to make at least one holiday purchase online this year, up from 36.0 percent three years ago, many will also use the Internet to browse before heading to stores to buy. According to the survey, most consumers (88.7%) regularly or occasionally examine products on the Internet before buying in a store. When it comes to researching merchandise, electronics are the most popular searches; more than one-third of online shoppers (39.3%) said they have browsed for electronics online before buying in a store within the last 90 days. Other popular merchandise that shoppers have recently studied online before buying in a store is apparel (20.0%), appliances (19.6%) and home improvement items (18.0%). Consumers also said they have researched medicines, vitamins and supplements (16.2%) and shoes (16.1%) online before purchasing in a store. “Companies view the Internet as a marketing opportunity, not only a sales channel,” said Phil Rist, Vice President of Strategy at BIGresearch. “Retailers see their websites as the first connection they make with many consumers and will be sprucing up their sites to give holiday shoppers ideas and information on popular gifts.” The survey found that shoppers use a variety of websites to research and compare products. Many consumers said they begin their online research at Google.com (23.6%) though Yahoo.com (7.2%), Amazon.com (5.5%) and eBay (3.7%) were other popular places for shoppers to begin searching for merchandise availability, prices and product specifics.