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JUPITER RESEARCH REPORTS THAT 2002 ONLINE HOLIDAY SALES ARE LIKELY TO EXCEED PRESEASON EXPECTATIONS OF 17% GROWTH, BUT FREE SHIPPING COULD HURT RETAILERS IN THE LONG-TERM
(New York, NY - January 6, 2003) - Jupiter Research, a division of Jupitermedia Corporation (Nasdaq: JUPM), today reported that based on early reports from online retailers, it appears that 2002 online holiday retail sales (covering the period of November 1st to December 31st) will exceed its original forecast of $13.1 billion, which would represent growth of more than 17% over the 2001 holiday period.Jupiter Research expects to release final 2002 holiday sales figures in March pending release of actual sales results from retailers and results of a post-holiday consumer survey. "Widespread free shipping promotions are the primary reason that the 2002 holiday season was such a good one," says Ken Cassar, Senior Analyst with Jupiter Research. However, Cassar warns, "Online retailers may have created the expectation among consumers that free shipping and handling is now the norm, which puts a lot of pressure on retailers to run free shipping promotions into perpetuity."
Jupiter Research advises that rather than fighting consumers on this issue, retailers should focus on improving operational efficiencies in their warehouses and exploring cost effective means of delivering goods. According to Jupiter Research's Cassar, "Retailers that do not have to match the prices in their own brick and mortar stores should consider gradually and subtly raising prices online to cover lost shipping and handling revenue."
Online retailers did a commendable job of keeping their sites up and running despite the fact that peak day sales volume was for many retailers more than 50 percent above last year, according to Cassar. "Retailers' Web sites and fulfillment infrastructure, by and large, bore the weight of the concentrated sales volume from a short holiday selling season," he said. "What makes this performance particularly impressive is that few retailers had made substantial infrastructure upgrades prior to the 2002 holiday shopping season."
About Jupitermedia Corporation
Jupitermedia Corporation (Nasdaq: JUPM), (www.jupitermedia.com)
headquartered in Darien, CT, is a leading provider of global real-time news, information, research and media resources for information technology and Internet industry professionals. Jupitermedia includes the internet.com and EarthWeb.com Network of over 150 Web sites and 175 e-mail newsletters that generate over 200 million page views monthly. Jupitermedia also includes Jupiter Research, a leading international research advisory organization specializing in business and technology market research in 18 business areas and 10 vertical markets. In addition, Jupiter Events include nearly 40 offline conferences and trade shows focused on IT and business-specific topics.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release which are not historical facts are "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties address a variety of subjects including, for example, the competitive environment in which Jupitermedia Corporation competes; the unpredictability of Jupitermedia Corporation's future revenues, expenses, cash flows and stock price; Jupitermedia Corporation's ability to integrate acquired businesses, products and personnel into its existing businesses; Jupitermedia Corporation's investments in international and venture fund investments; any material change in Jupitermedia Corporation's intellectual property rights and continued growth and acceptance of the Internet and information technology. For a more detailed discussion of such risks and uncertainties, refer to Jupitermedia Corporation's reports filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and Jupitermedia Corporation assumes no obligation to update the forward-looking statements after the date hereof.
Contact:
Michelle Quinell/Ben Billingsley
Trylon Communications
212-725-2295
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Mary Ann Boland
Marketing and Public Relations Associate
(212) 547-7939
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All current Jupitermedia Corporation press releases can be found on the World Wide Web at http://www.internet.com/corporate/press.html.
