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For Immediate Release
Contact: Kathy Grannis or Ellen Davis (202) 783-7971
Email: grannisk@nrf.com or davise@nrf.com
  

Internet to Influence One in Four Holiday
Purchases, According to NRF Survey


Washington, DC, October 30, 2006 -- From browsing to buying, the Internet will play a larger role than ever in holiday shopping this year, according to a new survey conducted for the National Retail Federation by BIGresearch. Shoppers, who are expected to spend $791.10 each this year on holiday merchandise, said they will use the Internet for an average of one-fourth (28.9%) of their shopping.

“While many shoppers plan to purchase holiday gifts online this year, others are using the Internet to look for gift ideas, research products and compare prices before heading to the store,” said Scott Silverman, Executive Director of Shop.org, the online retail division of NRF. “Retailers’ ongoing efforts to make their stores and websites work hand-in-hand will create more sales and happier customers.” 

Though nearly half (47.1%) of consumers plan to make at least one holiday purchase online this year, up from 36.0 percent three years ago, many will also use the Internet to browse before heading to stores to buy. According to the survey, most consumers (88.7%) regularly or occasionally examine products on the Internet before buying in a store. 

When it comes to researching merchandise, electronics are the most popular searches; more than one-third of online shoppers (39.3%) said they have browsed for electronics online before buying in a store within the last 90 days. Other popular merchandise that shoppers have recently studied online before buying in a store is apparel (20.0%), appliances (19.6%) and home improvement items (18.0%). Consumers also said they have researched medicines, vitamins and supplements (16.2%) and shoes (16.1%) online before purchasing in a store. 

“Companies view the Internet as a marketing opportunity, not only a sales channel,” said
Phil Rist, Vice President of Strategy at BIGresearch. “Retailers see their websites as the first connection they make with many consumers and will be sprucing up their sites to give holiday shoppers ideas and information on popular gifts.” 

The survey found that shoppers use a variety of websites to research and compare products. Many consumers said they begin their online research at Google.com (23.6%) though Yahoo.com (7.2%), Amazon.com (5.5%) and eBay (3.7%) were other popular places for shoppers to begin searching for merchandise availability, prices and product specifics.

About the Survey

The NRF 2006 Holiday Consumer Intentions and Actions Survey was designed to gauge consumer behavior and shopping trends related to the winter holidays. The survey, which polled 7,623 consumers, was conducted for NRF by BIGresearch from October 4-11, 2006. The consumer poll has a margin of error of plus or minus 1.0 percent.

BIGresearch is a consumer market intelligence firm that provides unique consumer insights that are gathered online utilizing very large sample sizes. BIGresearch’s syndicated Consumer Intentions and Actions Survey monitors the pulse of more than 7,000 consumers each month to empower its clients with unique insights for identifying opportunities in a fragmented and changing marketplace.
www.bigresearch.com

The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants, drug stores and grocery stores as well as the industry's key trading partners of retail goods and services. NRF represents an industry with more than 1.6 million
U.S. retail establishments, more than 24 million employees - about one in five American workers - and 2005 sales of $4.4 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. www.nrf.com.

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