Online browsing and research will increase offline retail sales by 12 percent over the next five years according to JupiterResearch. In their new report, “U.S. Online Retail Forecast, 2006-2011” growth of offline sales will reach 40 percent of total U.S. retail sales.
“Online retail sales are maturing and the lion’s share of future growth will primarily come from existing buyers spending more in the online channel,” says Patti Freeman Evans, JupiterResearch senior analyst and lead author of the report. “Assuming growth continues in a similar trajectory over the coming decades, U.S. online retail sales will plateau at 10% to 15% of total U.S. retail sales, barring a dramatic change in the online shopping experience that promotes an inordinate spending shift among buyers.”
The report says that online retail sales in the U.S. will increase by 16 percent in 2007 and reach $116 billion. Over the past three years the growth rate has been around 25 percent each year. In the next five years U.S. online retail sales will increase annually by 11 percent and reach $171 billion in 2011, Jupiter projects.
Even with the slower growth in online purchasing, web influenced offline sales will grow at a more rapid rate over the next five years. The report indicates the value that retail Web sites bring with their advertising and marketing that drive offline sales.
“With market maturation comes opportunity for retailers that can harness the power of the Internet to influence offline sales,” says David Schatsky, president of JupiterKagan Inc., JupiterResearch’s parent. “The key for retailers is to create clear, simple and convenient links to offline channels that persuade shoppers to stay with them as they cross channels.”
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Mike is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
