Stimulus Checks Fail To Spur Online Spending

The pace of growth in online retail spending slowed during the past two months, despite the distribution of economic stimulus payments, new data from comScore shows.

The year-on-year growth rate fell from 15% in April to 12% in May and 11% in June. Total U.S. online retail sales (excluding travel) reached approximately $31 billion in Q2 2008.

ComScore said its research reveals that fully two thirds of consumers said they had not planned to spend their stimulus checks and rather intended to use the cash to pay off debt or put the money into savings.

Video Games, Consoles & Accessories remains one of a handful of high-performing online retail categories, rising 73 % in Q2 2008 versus the same quarter year ago on the strength of consoles like the Nintendo Wii. Furniture, Appliances & Equipment (up 65%) was another top performer, while Home & Garden (up 23%), Event Tickets (up 22%), and Sport & Fitness (up 21%) also performed significantly better than the average.
Flowers, Greetings & Miscellaneous Gifts, Jewelry & Watches, Computers, Peripherals & PDAs, Toys & Hobbies, and Music, Movies & Videos all experienced declines versus last year.

 

Comments

[John Pseudonym]

This whole check thing is stupid anyway.

Why would you send $1200 to a couple making $250,000 a year?

If you really want the money to be spent, the income limit should be the poverty level and should have been $3000.

Low income people would rush out and blow it all as that's why there poor...

What did I do with mine? Put it in the bank; didn't spend a single penny.

2008 Jul 31 01:49 PM

[StateofConfusion]

I'm retired and work part time. While I thought the money should have been used for alternative energy investment, I did buy a camera with mine. I actually spent double the amount getting a zoom lens with it. I think it should have been sent only to those with incomes below $100K.

2008 Aug 01 04:14 PM