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SHOPLOCAL RETAIL INDEX UP 43% IN DECEMBER; CONTINUES RECORD GROWTH FOR USE OF INTERNET TO PLAN IN-STORE SHOPPING TRIPS
Consumers Flock to the Web to Find Savings and Deals on Holiday and Everyday Items in Soft Economy
Chicago - January 10, 2008- ShopLocal™, the leader in multi-channel shopping and marketing services, today announced the ShopLocal Index was up 43 percent for the month of December compared with the same period last year. The Index ended the 2007 year with a 36 percent overall growth versus 2006, reflecting consumers’ heightened awareness and use of the Internet to search for the best deals and promotions available in-store. As a point of comparison, e-commerce increased 19 percent in December versus last year, and total online retail spending grew 20% in 2007 (up from $102.1 billion to $122.7 billion) 1. In terms of retailer segments tracked by the ShopLocal Index, mass merchant and discount department stores showed the greatest growth, followed by consumer electronics and office stores.
The ShopLocal Index is the advertising industry’s first market indicator designed to track the influence of the Internet on in-store shopping. Updated monthly, the Index is based on the online activity of an average of 20 million monthly consumer visits to store promotions that are presented on the sites of 50 major U.S. retailers, including JCPenney, Best Buy, Walgreens and Home Depot. These retailers cover major retail segments such as computers, consumer electronics, office supplies, home improvement, department stores, mass merchants, grocery, drug and various specialty stores. Their online circular sites are powered by ShopLocal’s SmartCircular™ technology.
December 2007 ShopLocal Index highlights include:
- The ShopLocal Index reflected sustained growth (year-to-year page views) throughout the month of December, up 43 percent versus last year, to reach a seasonal high of 359 (benchmark of 100 from January 2006).
- The second weekend in December had the most visits for the month (60 million page views), in step with retailer reports of increased in-store shopping activity.
- Page views per visit on a per retailer basis reached 13.2, a 5.1 percent jump versus last December as consumers considered all available options before heading out to the stores.
- Department stores and mass merchants were most aggressive in their increased use of the Internet to drive consumers to the store. Retailers promoted heavily on the large portals to attract consumers to their site and then prominently featured store promotions on their own sites.
- For the year, the ShopLocal Index grew by 36%, significantly exceeding the growth of online sales.
“The Index reflects the growing use of the Internet by consumers and retailers to connect at the store,” said Vikram Sharma, CEO at ShopLocal. “For retailers it is a timely, far-reaching and cost-effective way to present offers to consumers who appreciate the convenience of a more informed shopping trip. While this is more apparent during a shopping season in a soft economy, it is a formula that works for both consumers and retailers in all seasons and should see continued strong growth through 2008.”
1 According to comScore Networks, January 2008
NOTE TO EDITORS: Indices available at www.aboutshoplocal.com/index.
About ShopLocal
ShopLocal, the leader in multi-channel shopping services, offers a complete suite of solutions connecting advertisers and consumers online and in-store. The company’s consumer Web site, ShopLocal.com, provides users with choice and control in their shopping experience by offering the most comprehensive selection of timely online and in-store offers on one easy-to-use site. With ShopLocal.com, consumers can find millions of products and up-to-date weekly sales, deals, and coupons for consumer electronics, apparel, groceries and more.
ShopLocal’s industry leading SmartCircular and SmartCatalog solutions are used by more than one hundred of the nation’s top retailers, including Target, Best Buy, Home Depot, CVS and Sears. ShopLocal powers multi-channel shopping for hundreds of newspaper Web sites and other leading local and shopping sites, such as Los Angeles Times, Miami Herald, Arizona Republic, Google and SuperPages.com. ShopLocal is owned by Gannett Co., Inc. (NYSE:GCI), Tribune Company (NYSE:TRB), and The McClatchy Company (NYSE:MNI). For more information, visit www.aboutshoplocal.com.
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