Jupiter research forecasts that off-line retail sales influenced by online research will reach one trillion dollars by 2011

JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, forecasts that off-line retail sales influenced by consumers’ online browsing and research will increase by a compounded annual growth rate (CAGR) of 12 percent over the next five years. Detailed in a new report, “US Online Retail Forecast, 2006 – 2011,” the healthy growth of off-line-influenced sales will reach 40 percent of total US retail sales by 2011.

“Online retail sales are maturing and the lion’s share of future growth will primarily come from existing buyers spending more in the online channel,” said Patti Freeman Evans, JupiterResearch Senior Analyst and lead author of the report. “Assuming growth continues in a similar trajectory over the coming decades, US online retail sales will plateau at 10 percent to 15 percent of total US retail sales, barring a dramatic change in the online shopping experience that promotes an inordinate spending shift among buyers.”

US online retail sales will grow by 16 percent in 2007 to reach USD 116 billion. Over the next five years US online retail will grow at a CAGR of 11 percent reaching USD 171 billion in 2011. Despite the slowing of growth in online buying, web influenced off-line sales will grow at a slightly faster pace over the next five years, reinforcing the vast advertising and marketing value retailer websites present.

“With market maturation comes opportunity for the retailers that can harness the power of the Internet to influence off-line sales,” said David Schatsky, President of JupiterKagan. “The key for retailers is to create clear, simple and convenient links to the off-line channels that persuade shoppers to stay with them as they cross channels.”