Stimulus Checks Fail to Spur Online Retail Spending
The pace of growth in online retail spending slowed during the past two months, despite the distribution of economic stimulus payments, new data from comScore shows.
The year-on-year growth rate fell from 15% in April to 12% in May and 11% in June. Total U.S. online retail sales (excluding travel) reached approximately $31 billion in Q2 2008.
ComScore said its research reveals that fully two thirds of consumers said they had not planned to spend their stimulus checks and rather intended to use the cash to pay off debt or put the money into savings.
In addition, it’s likely the impact of the stimulus may have been felt more offline, where a variety of merchants made it particularly easy for consumers to cash their checks at retail stores.
Video Games, Consoles & Accessories remains one of a handful of high-performing online retail categories, rising 73 % in Q2 2008 versus the same quarter year ago on the strength of consoles like the Nintendo Wii. Furniture, Appliances & Equipment (up 65%) was another top performer, while Home & Garden (up 23%), Event Tickets (up 22%), and Sport & Fitness (up 21%) also performed significantly better than the average.
Flowers, Greetings & Miscellaneous Gifts, Jewelry & Watches, Computers, Peripherals & PDAs, Toys & Hobbies, and Music, Movies & Videos all experienced declines versus last year.
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