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Report: Online CE Sales Can’t Overcome Drop in Store Sales

13 Jan, 2009 By: Chris Tribbey

Online sales of consumer technology products were up more than 7% this holiday season, according to the NPD Group. That wasn’t enough to offset a more than 8% decline in brick-and-mortar consumer technology sales.

Overall technology spending, including LCD TVs, notebook PCs, MP3 players, digital cameras and GPS units, was down nearly 6%, NPD Group reported.

“Given the economic conditions and the fact that there was no must-have product, the emphasis is more on how to make the most of what you have and not necessarily about the latest and greatest gadget,” said Stephen Baker, VP of industry analysis at NPD.  “Another factor that played a part in the decline of retail sales is the increase in online sales. This year we saw a greater emphasis by retailers and pure play driving consumers to their Web sites, but it just wasn’t enough to increase the total market where sales were off by $500 million.”

Of the five product categories, only LCD TVs saw an increase over 2007, up 24% in terms of units, and up 12% in terms of dollars.

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