SHOPLOCAL FINDS SHOPPERS’ FREQUENT USE OF ONLINE CIRCULARS LEADS TO MORE IN-STORE TRAFFIC

Survey Reports 95% of Shoppers Who Check Online Deals Weekly Visit a Retailer’s Store at Least Once a Month with 53% Shopping Every Week

Chicago - December 21, 2006 – Consumers who first visit retail Web sites are likely to shop more and spend more at their local stores, according to a new survey from ShopLocal, the trusted leader in multi-channel shopping services. The survey of more than 37,500 people underscores the prevalence of the Internet as a significant driver of in-store sales, as 69 percent said they made an in-store purchase after gathering information on products via online advertising circulars compared with 27 percent who bought items over the Internet after viewing the online ads.

The majority of respondents (56 percent) went to the online advertising circulars specifically to browse sales and discounts before purchasing and another 35 percent cited new specials piqued their interest. There was some variance from category to category with respondents indicating they glanced through the advertisements for less costly items, such as comparing groceries and beauty specials, but when it came to big-ticket items such as a consumer electronic product, people often used the online advertising circulars to research and compare specific items before visiting their local stores.

“The power of the Internet has improved the quality and quantity of today’s shopping experience, both for online purchasing and local in-store shopping,” said Bob Armour, chief marketing officer for ShopLocal. “Online purchasing offers convenience but lacks the social aspects of in-store shopping, such as seeing, feeling and holding items and it offers the greatest satisfaction of walking away with something right away and having it in-hand.”

ShopLocal conducted the online survey from October 26 through December 5, 2006. The survey covered 32 national and regional retailers across five major categories: consumer electronics, food/beverage and health/beauty, home and garden, mass merchant and office supplies. Over 37,500 shoppers who went to the retailers’ Web sites responded to the survey.

In a press release distributed last month, ShopLocal also reported an 84% increase from last year in visits to online circulars on November 24th’s “Black Friday,” one of the holiday season’s busiest shopping days, as consumers took advantage of finding online ads early in the day to help them pinpoint bargains available at local offline retailers.

“The conclusion to draw is that the Internet in general is becoming a mainstream source of information for consumers, and specifically, the online circular is becoming a must-have resource for shoppers and retailers,” stated Armour. “The more frequently shoppers use these circulars the more likely they are to visit a store in the near future.”

SIDEBAR FOR EDITORS:
An online advertising circular is an Internet-based version of a local printed advertisement, flyer or sales notice intended for mass distribution:

• Promotions based on geographic location
  
• Searchable by brand, category or item – a major benefit over printed pieces
  
• Most up-to-date sales and discounts
  
• User-friendly display

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ShopLocal offers consumers and retailers a comprehensive marketplace for multi-channel shopping and advertising. With ShopLocal.com (www.shoplocal.com) and The ShopLocal Network – made up of more than 200 affiliate media, search and shopping sites – consumers have access to the only Web site with information on products from local stores side-by-side with e-commerce options. With ShopLocal’s SmartCircular™, SmartCatalog™, SmartMedia™ services and MyStore™ by ShopLocal, retailers can distribute sales and promotional content on the ShopLocal site as well as through their own Web sites, integrating e-commerce and local in-store promotions.