Online retail spending falls

Despite the fourth quarter slump, retail e-commerce sales in the United States grew by 6% in 2008 over the previous year to $130.1 billion, the Reston, Virginia-based firm said.

"The fourth quarter rounded out what was a particularly challenging year for online retailers," comScore chairman Gian Fulgoni said in a statement.

"The financial market meltdown that began in the fall dramatically reduced consumers' discretionary spending power, resulting in the first quarter of negative growth that we've observed," he said.

"As we enter 2009 with rising unemployment and continued economicuncertainty, the first few months of the year will be especially critical in foretelling what 2009 has in store for the online retail sector."

ComScore said videogames, consoles and accessories were the faster-growing online retail category in 2008, with spending growing by 29% over 2007.

Online spending for home and garden furniture grew by 25% as did spending for sport and fitness. Online purchases of event tickets grew by 13% while sales of consumer electronics online grew by 9%.

ComScore said online spending on jewelry and watches fell 12% in 2008 compared with 2007, while sales of computer software were down 18% and spending on music, movies and videos dropped 23%.

Source: AFP

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