U.S. Retail E-Commerce Sales Growth Slows to 6 Percent in Q3 2008 Versus Year Ago
RESTON, Va., Oct 31, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- comScore, Inc. (Nasdaq: SCOR), a leader in measuring the digital world, today released its Q3 2008 retail e-commerce report, which showed that online spending grew 6 percent in Q3 2008 versus the same period last year, a slowdown compared to the year-over-year growth rates of 12 percent in Q1 and 13 percent in Q2 2008. Total U.S. online retail sales (excluding travel) were approximately $30 billion in Q3.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080115/COMSCORELOGO) Retail E-Commerce (Non-Travel) Growth Rates Excludes Auctions, Autos and Large Corporate Purchases Total U.S. - Home/Work/University Locations Source: comScore, Inc. Percent Change vs. Quarter Year Ago Q1 2008 12% Q2 2008 13% Q3 2008 6%
In addition to reporting this data from comScore's passively-observed behavioral panel, comScore surveyed more than 1,000 consumers in October 2008 to gather attitudes on the economy. The study revealed that the majority of consumers are fearful of the future, with 82 percent stating they are more afraid about the economic future than ever before. Additionally, only a quarter (26 percent) of respondents said they believe the economy will be 'better' a year from now.
Questions: 'A Year From Now the Economy Will be ... '
Date: October 2008
Source: comScore State of the US Online Retail Economy Survey
Percent of Respondents
Response (n=1064)
Better 26%
Same 24%
Worse 27%
I don't know 24%
"Consumers' economic pressures continue to have a significant impact on retail spending, which is evident in the slowing growth rates in the online channel," commented comScore Chairman Gian Fulgoni. "However, in a tight economy, the Internet remains a critical sales and media channel for retailers for three reasons. First, it is a more cost-effective medium than traditional media. Second, despite the slowdown, e-commerce growth rates still exceed those at retail. And third, online marketing campaigns have been proven to not only grow a retailer's e-commerce sales but to also have the ability to drive increased traffic into retail stores. And, with so many consumers expected to be especially cost-conscious this holiday season, it is important for retailers to reach them at the initial point of the purchase funnel -- when many product research and price comparisons are being conducted online."
Mr. Fulgoni will discuss these findings and other current e-commerce insights during the third installment of the company's quarterly webinar series, State of the U.S. Online Retail Economy, on Thursday, November 6 at 2 p.m. ET/1 p.m. CT (webinar registration details below).
Retail E-Commerce Growth Rates Show Five Consecutive Months of Declines
A review of monthly retail e-commerce growth rates helps to further depict the slowdown in the U.S. retail economy. So far this year, retail e-commerce growth rates have fallen from levels of 18 to 20 percent observed during Q4 of 2007 to a growth rate of only 6 percent in Q3 2008. Since April, we have seen five consecutive months of declining growth rates. September's 5-percent growth rate is the lowest recorded by comScore since it began tracking e-commerce sales in 2001.
Retail E-Commerce (Non-Travel) Growth Rates
Excludes Auctions, Autos and Large Corporate Purchases
Total U.S. - Home/Work/University Locations
Source: comScore, Inc.
Month Y/Y Percent Change
Jun-07 25%
Jul-07 22%
Aug-07 28%
Sep-07 19%
Oct-07 19%
Nov-07 20%
Dec-07 18%
Jan-08 12%
Feb-08 14%
Mar-08 9%
Apr-08 15%
May-08 12%
Jun-08 11%
Jul-08 8%
Aug-08 6%
Sept-08 5%
Video Games, Consoles & Accessories Remains a Hot Category
As in the prior quarter, Video Games, Consoles & Accessories remains one of a handful of high-performing online retail categories, rising 60 percent in Q3 2008 versus the same quarter year ago. Furniture, Appliances & Equipment (up 52 percent) was another top performer, along with the Sport & Fitness category (up 40 percent). Categories that have not performed as well as last year include Apparel & Accessories (down 2 percent), Toys & Hobbies (down 3 percent), Jewelry & Watches (down 11 percent), and Music, Movies & Videos (down 29 percent).
Growth in Retail e-Commerce Consumer Spending by Product Category
Total U.S. - Home/Work/University Locations
Source: comScore, Inc.
Percent Change
Product Category Q3 2008 vs. Year Ago
Total Retail Category (Excludes Travel) 6%
Video Games, Consoles & Accessories 60%
Furniture, Appliances & Equipment 52%
Sport & Fitness 40%
Event Tickets 18%
Flowers, Greetings & Misc. Gifts 14%
Home & Garden 6%
Consumer Electronics (excluding PC Peripherals) 1%
Computers, Peripherals & PDAs 0%
Apparel & Accessories -2%
Toys & Hobbies -3%
Jewelry & Watches -11%
Music, Movies & Videos -29%
Webinar Series: State of the U.S. Online Retail Economy in Q3 2008
The webinar presentation will include an overview of changes in consumers' online spending patterns from 2007 through the third quarter of 2008, survey findings that highlight consumer sentiments regarding the economy and the upcoming holiday season as well as an analysis of spending patterns across key product categories, retailer sectors and consumer demographic segments.
To register for the free webinar being held on Thursday, November 6 at 2 p.m. ET/1 p.m. CT, please visit: https://www1.gotomeeting.com/register/813494037.
About comScore
comScore, Inc. (NASDAQ: SCOR) is a global leader in measuring the digital world and preferred source of digital marketing intelligence. For more information, please visit http://www.comscore.com/boilerplate.
SOURCE comScore, Inc.
http://www.comscore.com
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