Wednesday, October 22, 2008

Slowdown in online holiday sales expected

By Mass High Tech Staff

Despite an expected 12 percent increase this holiday season over last season, online retail sales are still projected to pull in the “slowest growth rate to date,” according to Cambridge-based Forrester Research Inc. The research firm still expects about $44 billion in online retail sales this holiday season.

Forrester (Nasdaq: FORR) cites the slow economy for affecting the online buying rate.

Online market research analysis firm eMarketer Inc. announced a similar projected slowdown in growth rate, though with slightly different expected sales. EMarketer expects $32 billion, a 10 percent increase over 2007 online holiday sales, which had a growth rate around 23 percent, according to the research firm.

Most of the online retail sales for the holiday season are expected to come from return online buyers, rather than first-time online shoppers, Forrester reported. Clothing, books, DVDs/videos, music, toys and gift certificates make up the bulk of expected holiday purchases.