JUPITERRESEARCH FORECASTS ONLINE RETAIL SPENDING WILL REACH $144 BILLION IN 2010, A CAGR OF 12% FROM 2005(New York, NY - February 6, 2006) - JupiterResearch, a division of Jupitermedia Corporation (Nasdaq: JUPM) forecasts that online retail spending will increase from $81 billion in 2005 to $95 billion in 2006, and will grow to $144 billion in 2010. According to a new report entitled: "U.S. Online Retail Forecast, 2005 to 2010," authored by JupiterResearch Analyst Patti Freeman Evans, the key driver of online sales growth beyond 2006 will shift from obtaining new buyers to increasing the spending of existing buyers. JupiterResearch is a leading authority on the impact of the Internet and emerging consumer technologies on business.
By 2010, 71% of online users will use the Internet to shop compared to 65% in 2005, however, online retailers will find it difficult to find new non-buyers to convert. Online retailers will rely heavily on existing online shoppers to spend more than compared with previous years.
"Retailers can expect to be dealing with an increasingly experienced population of online shoppers," said JupiterResearch Analyst Patti Freeman Evans. "The online retail environment is maturing, and online buyers have become more savvy about finding free shipping and deeper discounts," added Freeman Evans.
The report also reveals that the Internet will influence nearly half of total retail sales in 2010, compared to just 27% in 2005. This projection combines total sales transacted online with those carried out off line but encouraged by online research. These offline sales will grow at a faster rate than online sales over the next five years, indicating both the need and opportunity for multichannel retailers to integrate their offerings. Driving this growth are the 85% of online shoppers who said they used the Internet to research their offline purchases in 2005.
"The fact that the Internet will influence nearly half of total retail sales in 2010 is staggering statistic for a shopping channel that will have been around for little more than 15 years by 2010," said David Schatsky, Senior Vice President of Research at JupiterResearch. "Our research shows that this presents an enormous opportunity for retailers that embrace a well-integrated multichannel operational strategy," added Schatsky.
The complete findings of this report are immediately available to JupiterResearch clients online at www.jupiterresearch.com. For additional information on the report or JupiterResearch's Retail Service offerings visit www.jupiterresearch.com or contact Kieran Kelly, Vice President of Global Sales and Client Service, at 1-800-481-1212 or [email protected]
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Jupitermedia Corporation (Nasdaq: JUPM) (www.jupitermedia.com), headquartered in Darien, CT, is a leading global provider of original information, images and research for information technology, business and creative professionals. Jupitermedia includes Jupiterimages, one of the leading images companies in the world with over 7.0 million images online serving creative professionals with brands like BananaStock, Brand X, FoodPix, Botanica, Nonstock, Comstock Images, Creatas Images, PictureQuest, Liquid Library, Thinkstock Images, Thinkstock Footage, Bigshot Media, Goodshoot, ITStockFree, Stock Image, Pixland, Photos.com, Ablestock.com, PhotoObjects.net, Clipart.com and AnimationFactory.com; and JupiterWeb, the online media division of Jupitermedia which operates four distinct online networks: internet.com and EarthWeb.com for IT and business professionals; DevX.com for developers; and Graphics.com for creative professionals. JupiterWeb properties include more than 150 Web sites and over 150 e-mail newsletters that are viewed by over 20 million users and generate over 300 million page views monthly. Jupitermedia also includes: JupiterResearch, a leading international research advisory organization specializing in business and technology market research in over 30 business areas and vertical markets.
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