Fifth Straight Month of Slowing E-Commerce Sales Growth

E-commerce sales growth slowed in September to 5%, the fifth consecutive month in which the growth rate has moderated. Take a look at the year-over-year growth rates for the last six months, as measured by ComScore (SCOR). The data excludes, auctions, autos and large corporate purchases:

• April: +15%
• May +12%
• June: +11%
• July +8%
• August: +6%
• September: +5%

A year ago, growth in many months was north of 20%. The 5% growth rate is the lowest level since ComScore started tracking the data in 2001.

For the third quarter, ComScore, says growth fell to 6%, from 13% in Q2, and 12% in Q1.

ComScore Chairman Gian Fulgoni said in a statement that  “consumers’ economic pressures continue to have a significant impact on retail spending, which is evident in the slowing growth rates in the online channel.”

Not every category is slowing, of course; here a look at some fast growing Q3 categories:

• Video games, consoles, accessories: +60%
• Furniture, appliances, equipment: +52%
• Sports and fitness: 40%
• Event tickets: 18%
• Flowers, greetings, gifts: 14%

But some categories are actually shrinking:

• Apparel and accessories: -2%
• Toys, hobbies: -3%
• Jewelery, watches: -11%
• Music, movies, video: -29%

I’d note, by the way, that October by all indications has been a worse month economically than September; you have to wonder if a down month for e-tailing looms ahead.

Comments

[Urbane Gori...:]

I'll accept your figures, but I'm curious if the 'fast growing categories' truly are growing, or are just a percentage of the pie bigger as other categories have dropped.

Thx for teh article ... jegan

2008 Nov 01 04:07 PM