Retail Spending Still Growing, But Slower - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Retail Spending Still Growing, But Slower

Sales projections have been downgraded, online and off, but consumer confidence appears to be rebounding.

Projections for consumer spending for the rest of the year have been downgraded slightly but are still higher than a year ago. Whether consumers truly believe that shopping is a patriotic duty or see it as a form of therapy, their spending habits nearly have recovered to pre-Sept. 11 levels, though online sales are proving slower to rebound.

The National Retail Federation has revised forecasts for the fourth quarter, predicting that spending will increase by 2.2% over last year instead of the 4% previously forecasted. The federation also predicts 2001 holiday retail sales will increase between 2.5% to 3.0% over 2000. The estimates cover general merchandise, apparel, furniture, home furnishings, electronics, and appliance stores.

Cathy Hotka, the federation's VP of IT, doubts that a fear of going to the mall will prompt a spike in online sales, but online sales appear to be recovering after a pronounced drop-off following the terrorist attacks. Internet retail sites had returned to 85% of normal weekly sales volume for the week of Sept. 17, according to comparison-shopping site BizRate.com.

Goldman Sachs analysts, seemingly unconvinced that online retailers can recover fully, lowered revenue estimates Monday for Amazon.com, Yahoo, 1-800-Flowers.com, CNet Networks Inc., and Homestore.com Inc. They also lowered their estimated 2001 sales for Amazon to $3.05 billion from $3.16 billion. Goldman Sachs' skepticism is countered, however, by the continued success of eBay Inc., which last week said it still expects to post record net revenue of $185 million for the third quarter.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
Slideshows
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
Register for InformationWeek Newsletters
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll