The “busiest shopping day of the year” provided a windfall for retail web sites, as Internet users spent over $500 million during Thanksgiving week (November 22-28), nearly doubling what they spent the preceding week, a Goldman Sachs – PC Data Online weekly buying study disclosed this morning.
Significant increases in the number of buyers occurred in nearly all major categories with software, toys, music and books respectively claiming highest numbers this week.
The weekly survey is part of a study commissioned jointly by Goldman Sachs’ e-Tailing analyst Anthony Noto and PC Data Online to measure behaviors, attitudes and satisfaction levels of online buying during the upcoming Holiday season. A leading Internet research firm specializing in web commerce, PC Data Online surveyed 3,084 home-based Internet users about their online web buying between November 22 and 28 in cooperation with Goldman Sachs.
“What’s most impressive about this jump was the increase in buying across all categories,” said Cameron Meierhoefer, Internet analyst for PC Data Online. “It appears that a significantly larger and more diverse set of consumers is taking advantage of the widely expanded set of offerings this year.”
Meierhoefer also noted that more potential online shoppers are postured to join the masses online, with 40 percent of the respondents indicated they plan to “begin” online shopping after the Thanksgiving weekend.
“We have been tracking brick-and-mortar sales for many years. If similar buying patterns exist on the Internet during this Holiday season, then I expect that more than 70 percent of spending is yet to come between now and the end of the year,” Meierhoefer said.
Goldman Sachs is a leading global investment banking and securities firm, providing a full range of investing, advisory and financing services worldwide to a substantial and diversified client base, which includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.
Headquartered in Reston, VA, PC Data was established in 1991 and is a leader in technology intelligence and analysis. The PC Data Online suite of services was introduced in 1999 to track Internet usage. It has recently established a state-of-the-art capability to field Internet-based surveys.
Top Categories Among Internet Shoppers (Nov. 22-28)
Category Estimated Buy Rate Est. Amount % gift
Buyers Spent
(000) (000)
Computer Software 973 13.2% $ 54,968 25.0%
Toys 880 20.3% $ 61,989 84.9%
Music 846 11.3% $ 22,566 39.4%
Books 836 19.1% $ 28,030 36.0%
Videos/DVD 587 14.3% $ 16,354 35.8%
Health & Beauty 479 19.1% $ 12,611 28.3%
Computer Hardware 464 10.2% $119,126 19.6%
Apparel 464 16.1% $ 41,850 46.5%
Flowers/Cards 401 11.1% $ 8,174 78.4%
Pet Supplies 313 15.8% $ 7,656 23.1%
Travel 288 8.7% $ 87,455 19.7%
Food/Groceries 283 14.4% $ 12,005 22.0%
Electronics 283 6.4% $ 28,701 33.3%
Home and Garden 244 18.0% $ 20,277 39.2%
Sporting Goods 161 11.0% $ 12,859 25.0%
Entertainment 156 6.9% $ 5,127 21.2%
Autos 108 4.0% $ 5,351 18.2%
Total $545,098
Internet Spending by Category (Oct. 30 – Nov. 28)
(in thousands)
Category 10/31/99 11/7/99 11/14/99 11/21/99 11/28/99
Computer
Software $19,504 $25,506 $21,908 $28,674 $ 54,968
Computer
Hardware $34,957 $58,803 $37,250 $81,770 $ 119,126
Videos/DVD $ 5,693 $ 7,034 $ 6,499 $ 6,280 $ 16,354
Music $ 6,699 $11,399 $12,701 $ 8,546 $ 22,566
Flowers/Cards $ 3,988 $ 3,371 $ 3,801 $ 2,397 $ 8,174
Travel $35,153 $31,950 $35,915 $22,028 $ 87,455
Toys $10,608 $12,881 $14,134 $19,943 $ 61,989
Books $ 6,758 $ 7,877 $ 7,412 $ 9,748 $ 28,030
Health & Beauty $ 5,294 $ 4,671 $ 5,437 $ 8,787 $ 12,611
Apparel $ 8,911 $10,478 $11,862 $13,920 $ 41,850
Home and Garden $21,453 $ 5,959 $ 3,743 $20,298 $ 20,277
Autos $ 4,511 $ 7,767 $22,658 $13,431 $ 5,351
Food/Groceries $ 1,627 $ 2,736 $ 3,559 $ 3,597 $ 12,005
Electronics $13,255 $18,855 $ 9,960 $12,646 $ 28,701
Entertainment $ 5,061 $ 6,155 $ 2,488 $ 3,523 $ 5,127
Pet Supplies $ 3,807 $ 1,942 $ 3,438 $ 3,660 $ 7,656
Sporting Goods $11,988 $ 4,318 $ 5,481 $14,958 $ 12,859
Totals $199,267 $221,702 $208,245 $ 274,205 $ 545,098
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