STORES Magazine - October 2008 - (Page 28)

EXECUTIVE SUITE / SPECIAL REPORT The online retailers that shoppers like most BY SUSAN REDA, EXECUTIVE EDITOR E veryone has a favorite online retailer and, judging from STORES’ Favorite 50 list for 2008, a lot of people have the same favorite . . . The Seattle-based king of the Internet jungle is the world’s largest online retailer, with sales of $14.8 billion last year and an estimated 6 percent share of this growing market. Being the biggest doesn’t always equate with popularity, but it certainly does in this instance. For the second consecutive year, tops this exclusive list of favorite online retailers compiled by BIGresearch. also dwarfs the competition in terms of scale For eBay, the past year has been one of change, with Meg Whitand innovation —factors that loom large when it comes to lurman stepping down and new CEO John Donahoe shaking ing shoppers to the site and encouraging them to return again things up a bit. At Walmart, it’s about a continued ramp up of and again. In the last 12 months, a steady new products – with more than a million now WHO’S YOUR FAVORITE? stream of revenue-building projects has been available online – and continued improvements he Favorite 50 Online rolled out. in the inventory management processes that Retailers is a list of Last November, introduced enable online buyers to either pick up in the e-commerce websites as Kindle, an electronic book reader. At the start store or have it shipped directly to their homes. ranked by the consumers who of the year, the currency converter debuted, alRounding out the top 10 online favorites are use them. lowing international customers to purchase in Best Buy, JCPenney, Target, Google, OverWorthington, Ohio-based local currency. Next came the launch of stock, Kohl’s and Sears. BIGresearch asked two openTextBuyIt, making it possible for customers to Although shoppers have grown increasingly ended, write-in questions about online shopping to a make purchases using text messaging. cautious about their spending in the last year, universe of 8,351 consumers: Spring marked the release of “Daily Deals” online retail sales remain a bright spot. ForWhat website do you shop and “Friday Five,” ongoing promotions ofrester Research retail analyst Sucharita Mulpuat most often for apparel fering deep discounts on Amazon MP3. ru reports that e-commerce sales (excluding items? And within weeks acquired travel) totaled $174.5 billion in 2007, up alWhat website do you shop and Last month, most 21 percent from the year before. at most often for non-apparel the online giant opened a motorcycle and ATV Online sales growth has slowed a bit this year, items? No merchants’ names were store, and word has it that customers will soon yet Mulpuru is forecasting a 17 percent increase listed or suggested. The final be able to buy wine there, too. Is it any wonand estimating that sales will top $200 billion. list was assembled by ranking der company executives expect to reach $20 In addition, she is looking for online retailers to online retailers in order of billion in revenues this fiscal year? add more than $30 billion a year in sales in each total mentions. Customers’ second favorite is eBay, the San of the next five years. By 2012, Mulpuru exJose-based online auction site, followed by pects non-travel-related online sales to equal 11, the e-commerce extension of percent of total retail spending – nearly double the world’s largest bricks-and-mortar retailer. continued on page 34 T 28 STORES / OCTOBER 2008 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - October 2008

STORES Magazine - October 2008
Executive Editor's Page
President's Page
Force of a Different Collar
What Shoppers Think
Bagging the Competition
10 Things You May Have Missed
Numbers Worth Counting
Full Price/Markdown
Retail People
Favorite 50
Sticky Strategies for Retention
Business Intelligence
NRFtech Wrap-up
Warehouse Systems
Selling Tools
Supply Chain
LOEB Retail Letter
Arts Update
Point of View
NRF News
Retail Crossword
Retail Industry Calendar
Last Laugh

STORES Magazine - October 2008