Shop.org 2009 Study Details Recession’s Impact on Web Sales and Marketing

Findings from The State of Retailing Online 2009, the 12th annual Shop.org study conducted by Forrester Research Inc., illustrated the economy’s impact on marketing by online retailers, who have turned to new tactics to find and retain customers. The survey of 117 online retailers also found that, while the number of companies focusing on customer retention has nearly doubled in the past year, many retailers see the recession as an opportunity to capture market share from weakened competition.

While Internet sales continue to best brick-and-mortar sales, 54 percent of respondents said they expect overall retail growth to slow during the next 12 months and 57 percent acknowledged the recession is hurting their bottom line. Still, four out of five retailers think the Web is better suited than other channels to withstand the downturn.

“Retailers everywhere are trying to get their arms around a pullback in consumer spending, and online retailers are no exception,” said Scott Silverman, executive director of Shop.org. “Online retailers are trying to weather this economic storm by doing more with less, making smart spending decisions and leveraging effective, affordable tactics like e-mail to grow their businesses.”

“The State Of Retailing Online 2009: Marketing Report” is currently available to Shop.org members and can also be purchased directly at www.shop.org/soro. A Merchandising Report and Profitability Report will be released at future dates. Visit www.shop.org.

In This Issue: Earnshaw’s annual report on the growth of the industry Understanding the grandparent demographic An update on the state of e-commerce Plus: Infant and toddler fashion Coming Next Month: Preschool properties that translate into consumer products success Retailers reveal the power of accessories The sports licensing report Plus: Character-based apparel