A recent report by internet researchers, Giga Information Group,
claims that on-line retail sales will rise from a current market
value of $25 billion to $152 billion by 2002 despite fears that
many dot.coms may struggle to survive.
The study concedes that many on-line retailers will be forced to
close in the near future because of poor performance levels, but it
expects that those that survive will be strongly established
competitors for off-line retailers.
It predicts that the strongest internet retailers will be ‘click
and mortar’ companies, that operate traditional stores as well as
internet services. These ventures are expected to generate 60% of
internet sales by 2002, while pure on-line retailers will only
account for 26% of the market.
Speaking on behalf of Giga, Andrew Bartels said, “consumer use
of the internet for product research will grow, but the majority of
sales will still close in stores where consumers can touch products
and take them home immediately”.
