Ronald Boire, CEO of Sears Canada, will take the top post at the bookseller in September, and current CEO Michael Huseby will become executive ...
Online retail accounts for up to 8% of consumer spending, comScore says.
E-commerce’s share of consumer spending is approaching 10%, says comScore Inc. chairman Gian Fulgoni. The web measurement firm reports that e-commerce sales, excluding sales from the auto and foodservice categories, have accounted for between 7% and 8% of total retail sales for the last four quarters.
E-commerce sales through the third quarter also increased 8.9% compared with the same period last year. E-commerce accounted for $98.9 billion in sales through the third quarter of 2010 versus $90.8 billion a year ago. Third quarter e-commerce sales this year reached $32.1 billion, up 8.4% from $29.6 billion a year ago, comScore says.
“As we climbed out of the recession, sales improved moreso in e-commerce [than in other retail] as it gained share of consumers’ wallets,” he says, adding that e-commerce sales are now greater than they were before the recession.
The largest e-retailers benefit the most from increased spending, comScore data reveal. The top 25 e-retailers, as measured by the research firm, captured 69.9% of e-commerce sales during the third quarter, compared with 64.4% for the same period last year. “The big are getting bigger,” Fulgoni says, adding that large e-retailers are far outspending smaller e-retailers on marketing as economic conditions improve and consumer spending rebounds.
Middle-income households drove the largest increase in online spending growth during the third quarter. Online spending for households earning $50,000 to $99,999 annually grew 11% from a year ago. Fulgoni says the increased online spending stems from the benefits of shopping online. “The benefits of e-commerce, such as better prices, larger assortments and convenience are really appealing in these economic situations,” he says.
All measured e-retail categories grew during the third quarter compared with a year ago, comScore reports. Categories posting the strongest growth, 10% or greater, were books/magazines, computers/peripherals/PDAs and consumer electronics. The weakest growth categories, which posted growth of 1% to 4%, were home and garden, furniture/appliances/equipment and sports and fitness.