Monday, March 8, 2010

The web and the economy

Says Reuters:

SAN FRANCISCO (Reuters) – Online retail sales in the United States could reach $248.7 billion by 2014, growing 60 percent from 2009, according to a study released on Monday.

Driven by a 10 percent compound annual growth rate, the projected $248.7 billion is expected to account for 8 percent of total U.S. retail sales within five years, according to Forrester Research, which authored the study.

Online sales, which slowed in the downturn, have still managed to outpace sales at U.S. brick-and-mortar stores. The National Retail Federation expects 2.5 percent growth in total retail sales in 2010, well below the 11 percent online growth rate that Forrester projects -- the same as in 2009.


So, we expect 11% of retail sales to move from local storefronts to the web, and that is not going to cause a restructuring? The change is stronger than a simple growth analysis because the items moved on-line tend to be higher valued items that can justify shipping costs.

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