This week's highlighted research:



Nielsen//NetRatings. "Holiday eSpending report."



Forrester Research. "Customers prefer in-person experiences."



MetaFacts, Inc. "Online and retail shopping--Not all buyers fit in the same big box."

Everybody, especially government economists, likes to give rosy predictions about the economy. The recent holiday season generated a lot of optimistic comments, but overall, it's not as good as all that. Brick-and-mortar Christmas retail sales didn't meet expectations, and more people waited until the last minute to shop as tight pocketbooks forced people to wait for the best bargains. It was a sort of consumer/retailer cat and mouse game, with retailers hoping for good early returns, and consumers waiting it out in hopes of late-season discounts. My own informal observations saw more people shopping at dollar stores and discount outlets, and fewer at high-end retail shops.

While overall, holiday spending may have been a dud, online spending took a bigger share of the pie this year. The Nielsen//NetRatings report revealed that online holiday shopping came up to $30.1 billion, not including travel. This figure represents a whopping 30 percent increase over 2004's online Christmas shopping. Nielsen reports the five greatest online shopping categories as, in decreasing order: apparel and clothing, computer hardware and peripherals, consumer electronics, books, and toys and video games. The report further notes that this year, brick-and-mortar stores accounted for 68 percent of holiday sales, with online accounting for 27 percent and catalog sales five percent. This compares with 2002 numbers of 78 percent for stores, 16 percent for online and six percent for catalogs, marking a ten percent decrease for brick-and-mortar and an 11 percent increase for online. The increasing popularity and acceptance of online Christmas shopping underscores the fact that shoppers are being more diligent about spending and price comparisons--online shopping of course makes it much easier to compare prices and find the best deal.

It's a fact that consumers had less to spend this year, due to several economic factors, not the least of which is high heating bills this winter. But, smart retailers will be able to capitalize on a poor economic environment by shifting more towards the online environment. But as that shift continues, Forrester suggests that there is one thing that tends to be forgotten: It's just more pleasant to shop in person. There's just nothing like going out for an afternoon with a friend, braving the cold and snow, browsing the stores, stopping for a hot cappuccino and a little people-watching, and taking in the decorations and lights downtown. Online shopping is functional, cheap and expedient, but it takes away that experience. I for one, still enjoy my annual trek into Marshall Field's. This year I selected a gift from their perfume counter, taking time to let the sales girl spritz several different samples onto little pieces of paper for me to examine--definitely an experience that is not likely to be replicated online any time soon.

Forrester says that online retailers have to take this into account, by doing three things: improving their usability, putting a little more humanity into their online channels, and supporting more cross-channel experiences.

MetaFacts also talks about the social aspect of shopping, noting that shoppers have taken to the habit of doing their buying research online first, and then making their purchases at a brick-and-mortar store. When asked whether they agree with the statement, "I enjoy shopping in person because I can talk with and meet people," MetaFacts reported that 29 percent of shoppers agreed with the statement, while 15 percent disagreed.

ITworld.com

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