Online retail sales grew 19% in October, dragged down by slow apparel sales

Online retail sales in October grew 19% over October 2006, reaching $9.96 billion from $8.40 billion a year ago, comScore Networks Inc. reports. Year-to-date sales through October grew 21% to $93.55 billion from $77.52 billion. October’s sales growth would have been higher except for weakness in the apparel industry, comScore says.

IRCE 2008 Conference Multi-Media CD-ROM

“That online sales growth rates diminished slightly in October is not entirely unexpected, as many consumers are feeling the pinch of ballooning mortgages and gas prices, coupled with a decline in housing values,” says comScore chairman Gian Fulgoni. “Even the rapidly growing online commerce sector appears to not be immune from these economic realities.”

Apparel sales, one of the largest categories online, were soft in October, rising only 5%, comScore reports. “Soft online apparel sales in October mirror reports of declining same-store sales figures in retail apparel, as unseasonably warm weather across many parts of the country appeared to dampen consumer demand,” Fulgoni says. “Excluding apparel from our analysis, online retail sales actually grew at a healthier 22%. Assuming that apparel sales rebound during November and December, this suggests that 2007 may well see another merry Christmas for online retailers.”

The fastest growing category of retail sales was video games, consoles & accessories, up 264% over a year ago. The five fastest growing categories and their rates of increase over a year ago, according to comScore, were:

• Video games, consoles & accessories, 264%
• Furniture, appliances & equipment, 105%
• Computer software (excluding PC games), 76%
• Event tickets, 43%
• Jewelry & watches, 26%

Online travel sales in October grew 8% over October 2006 to $6.51 billion from $6.02 billion a year ago. Through October, online travel sales in 2007 grew 12% to $66.252 billion from $59.958 billion in 2006.