Online Jewelry and Watch Sales Grew 32% in Q2

Retail c-commerce spending increased 23% for the quarter

-- JCK-Jewelers Circular Keystone, 7/31/2007 7:30:00 AM

Retail e-commerce spending in the U.S. (excluding travel) increased 23 percent in the second quarter of 2007 versus year ago to $27.2 billion, according to comScore, Inc., which measures digital data. Jewelry and watch sales grew by 32 percent for the period.

“Retail e-commerce rebounded solidly in the second quarter after a modest start to the year,” said Gian Fulgoni, chairman of comScore. “After posting 17 percent growth versus year ago in Q1, retail e-commerce sales grew 23 percent year-over-year in Q2, matching the growth rates we’ve seen during the past couple of years.”

The top-gaining e-commerce category in the quarter was video games, consoles & accessories, which jumped 159 percent on the strength of Nintendo Wii and PlayStation 3 sales, according to the Reston, Va.-based company. Sport & fitness also saw substantial gains (up 58 percent), followed by consumer electronics (up 51 percent) and event tickets (up 44 percent).

Online travel spending increased 14 percent to $20.3 billion, comScore said. Total U.S. e-commerce spending climbed 19 percent to $47.5 billion for the period.

Based on the first-half growth rates, comScore said total U.S. online consumer spending is on track to reach $200 billion in 2007.

“Even factoring in the moderate growth rates from Q1, we’re currently on pace to break $200 billion in e-commerce spending in 2007,” Fulgoni said. “However, in the past we’ve seen growth rates accelerate as the year progresses, culminating with the online holiday shopping season, so $200 billion may actually turn out to be a conservative estimate.”