Tuesday, December 1, 2009, 6:37PM ET - U.S. Markets Closed.
From Silicon Alley Insider:
U.S. retail e-Commerce grew 1% year-over-year in October. One percent — that's not a typo. A year ago, U.S. retail e-Commerce was growing 20% year over year. Six months ago it was growing 15% year over year.
To call this a "slowdown" would be an understatement. This is called smashing into a brick wall.
One reason for the crash? e-Commerce spending by consumers with incomes under $50,000 is now shrinking.
comScore:
Retail E-Commerce Growth Rates Show Six Consecutive Months of Slowdown
A review of monthly retail e-commerce growth rates depicts the slowdown in the U.S. retail economy. Retail e-commerce growth rates have fallen from a height of 28 percent in August 2007 to a growth rate of just 1 percent in October 2008. October represents the sixth consecutive month this year of slowing growth rates.
______________________________________________________________________
Retail E-Commerce (Non-Travel) Growth Rates
Excludes Auctions, Autos and Large Corporate Purchases
Total U.S. – Home/Work/University Locations
Source: comScore, Inc.
Month Y/Y Percent Change
Jun-07 25%
Jul-07 22%
Aug-07 28%
Sep-07 19%
Oct-07 19%
Nov-07 20%
Dec-07 18%
Jan-08 12%
Feb-08 14%
Mar-08 9%
Apr-08 15%
May-08 12%
Jun-08 11%
Jul-08 8%
Aug-08 6%
Sep-08 5%
Oct-08 1%
______________________________________________________________________
Negative Growth Rate among Lowest Income Earners
A three-month trailing average of retail e-commerce spending reveals that the low and middle-income segments are responsible for much of the softness. Overall, online retail spending from August through October grew just 4 percent versus year ago, with spending declining by 3 percent among households making less than $50,000. Households with income between $50,000 and $100,000 showed marginally positive spending growth (1 percent), while those making at least $100,000 increased their spending at a healthy rate of 14 percent.
______________________________________________________________________
Retail E-Commerce (Non-Travel) Growth Rates by Income Segment
Excludes Auctions, Autos and Large Corporate Purchases
Aug-Oct 2008 vs. Year Ago
Total U.S. – Home/Work/University Locations
Source: comScore, Inc.
HH Incomes Segment Aug-Oct Y/Y Share of Total
Percent Change Retail E-Commerce Dollars Spent
$0 - $49,999 -3% 21%
$50,000 - $99,999 1% 45%
$100,000+ 14% 35%
Grand Total 4% 100%
"There is much pleasure be gained from useless knowledge?" -----Look at what happened in the past.
Well, it's not like the American consumer can tap into their savings when credit dries up. And the odds of them receiving a 20% pay raise in this economic environment are slim to none and slim just left town. So unless the American consumer has a money printing press at home, there is no money to fuel an economic recovery. And since the government continues to put the cart before the horse, the American consumer will remain under pressure. Businesses exist because of the consumer, not vice versa.
Well, it's not like the American consumer can tap into their savings when credit dries up. And the odds of them receiving a 20% pay raise in this economic environment are slim to none and slim just left town. So unless the American consumer has a money printing press at home, there is no money to fuel an economic recovery. And since the government continues to put the cart before the horse, the American consumer will remain under pressure. Businesses exist because of the consumer, not vice versa.
who cares.. doesn't everybody already have enough crap.. I mean isn't that part of the problem.. ridiculous expectations and placing wants over needs.. ridiculous...
don't spend money.. boycott xmas.. use credit unions.. try not to support any large businesses..
when media hosts will look and sound REALLY terrified, this recession will be almost over
e-Commerce Growth Screeches to a Halt: I wonder why??? Everything is going as according to plan..
One of the best reasons why Detroit automakers should not receive a bailout can be found in a General Motors "Jobs Bank" program that, bizarrely, pays employees not to work. ------------------------------ A beneficiary of that program was someone named Jerry Mellon, who worked for GM until his division merged with another in 2000 and he was no longer needed. Except for a brief period in 2001, Mellon received his full salary for not working, which reached $64,500 a year by 2006. Include benefits, and the annual cost to GM exceeds $100,000. -------------------------- To earn his pay, Mellon was given the formidable task of showing up in a windowless shed, sitting at a table, and doing nothing for eight hours a day for six years.
Enough with the BS - We are in a recession tinkering on the fringe of a depression -do your home work and look at the cause of the great depression. Then replace words such as "margins" with "hedge funds" and you will see that we are on the same track. There was nothing the government could do about it then, and there is nothing the government can do about it now. Cash was king then and cash will be king going forward.
THIS IS THE BIGGEST BANK HEIST IN HISTORY
"I guess it's time to find somewhere else to go."...ummm, this is a global issue...where else is there to go?
Q.伙计们,你们在折腾些啥子喔? A.By not forgetting past events, you can take them as guides in future events.
Great Depression circa 2008 -09 -10 ....... Fall of the roman American empire Unemployment going to 10.8% Civil war coming between the haves and the have nots Any one disagree????
I only shopped on the Internet for a short while and got my credit card information stolen. Can't trust anyone.
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Yahoo! Finance User - Wednesday November 19, 2008 12:38PM EST
I'm not buying anything except necessities. And maybe shotgun shells.