Online spending declines after Xmas shock

Online spending in the US fell by half in January compared to December, according to the latest stats from the National Retail Federation (NRF) and Forrester Research.

The survey concludes that total spending on online sales decreased from $6.1 billion in December to just $3 billion in January.

Toys and video games experienced the largest decrease, falling from nearly $600 million in December to a measly $125 million in January.

Food and beverages, flowers, jewellery, and clothes also experienced significant declines.

This really got researchers thinking until one bright spark realised that retail spending usually declines immediately after Christmas.

Said James L McQuivey, research director at Forrester: "The 50 per cent decline in online consumer spending in January is exactly what we would expect of the post-holiday season - not a reflection of how consumers feel about shopping on the Internet." ®