Online Retail Increases 17.6% in December

According to MasterCard in the US, December online sales increased 17.6% year-on-year, the highest year-on-year gain since 2007. And according to ComScore, the month of November saw increases of 12% year-on-year, from US$29.1 billion in 2009 to US$32.6 billion in 2010. That exceeded the firm’s original prediction of 11% growth, spelling a boon shopping season for American online retailers.

MasterCard’s data is based on transaction information from more than 72,000 retailers, and showed that:

- Online apparel sales grew 28.2% in December over the corresponding month in 2009 - Interestingly, total apparel sales (sold both online and in-store) grew only 10.9% - The electronics category grew by 14% in online sales in December’s year-on-year comparison

Michael McNamara, vice-president of research and analysis for MasterCard Advisors SpendingPulse, suggested that these figures represent “positive momentum that is more substantial than the short surge in spending we saw in Q1 2010.”

It’s a dearly needed positive sign for the retail industry in the US, largely led by the impressive growth in online spending as retailers continue to invest in improving their multichannel strategies. Buying apparel online, it seems, is now de rigeur for the American shopper as better online merchandising, customisation and optimisation improves the customer experience. Read more at www.powerretail.com.au