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US Retail E-Commerce Down 3% in Q408, Up 6% for Year »
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US Retail E-Commerce Down 3% in Q408, Up 6% for Year
Online retail spending declined 3% in the fourth quarter of 2008 from the year-earlier period, according to comScore, which said that was the first recorded quarter of negative growth since it began tracking e-commerce spending in 2001, reports Retailer Daily.
Nonetheless, for the full year 2008, retail e-commerce grew 6%, to $130.1 billion, but at substantially lower growth rate than in previous years.
“The fourth quarter rounded out what was a particularly challenging year for online retailers,” said comScore chairman Gian Fulgoni. “The financial market meltdown that began in the fall dramatically reduced consumers’ discretionary spending power, resulting in the first quarter of negative growth that we’ve observed.
“As we enter 2009 with rising unemployment and continued economic uncertainty, the first few months of the year will be especially critical in foretelling what 2009 has in store for the online retail sector.”
Retail E-Commerce Quarterly Growth Rates Slip throughout 2008
A review of quarterly retail e-commerce growth rates depicts the slowdown in the US retail economy during the past two years.
Throughout much of 2007, quarterly growth rates remained in the vicinity of 20%. However, beginning with Q108 the growth rates began to decelerate, culminating in a three-percent decline in the final quarter of 2008.
Videogames Top-Growing Online Retail Category
The fastest-growing retail category in 2008 was videogames, consoles & accessories (up 29% vs. 2007), which continued to benefit from online sales of popular game consoles like the Nintendo Wii, Microsoft Xbox 360 and Sony PlayStation 3.
Other fast-growing categories included home, garden & furniture (up 25%) and sport & fitness (up 25%), both of which benefited from an increasing consumer willingness to complete major consumer purchases, such as furniture and home exercise equipment, online.
Two of the largest online retail categories, consumer electronics (up 9%) and apparel & accessories (up 4%) both managed to grow in 2008.
