Microsoft having Xmas to remember
By Allen Wan, CBS.MarketWatch.com
Last Update: 5:22 PM ET Dec. 17, 2001
NEW YORK (CBS.MW) - Despite a slowdown in consumer spending and tough economic times overall, some e-commerce sites are having a Christmas to remember.
Microsoft's (MSFT: news, chart, profile) MSN e-commerce portal, for one, is racking up big numbers this quarter, with sales expected to grow 109 percent from last year's levels and 100 percent from the last September quarter, said Jim Barr, general manager of e-commerce services at Microsoft.
While individual e-commerce sites such as MSN and AOL (AOL: news, chart, profile) are putting up strong numbers, the industry as a whole is expected to enjoy steady but less spectacular growth this year of 10 to 12 percent to $12 billion, Barr said in an interview with CBS.MarketWatch.com.
That's still better than what the traditional retailers are expected to ring up this year. Barr forecasts flat to slightly lower sales figures for the retailers this year due to the economic slowdown.
Barr attributed MSN's gains to both a seasonal uptick in sales, the aftereffects of the Sept. 11 terrorist attacks and the flexibility that online shopping offers to consumers.
"I think online shopping has come of age. There are 6 million more online shoppers this year than last year. The effects of Sept. 11 have contributed as well with more folks staying home and sending gifts," he said.
He said the season's hottest toys are anything related to Harry Potter as well as the upcoming "Lord of the Rings." Microsoft's Xbox is another popular item that is becoming increasingly scarce even on the company's own e-commerce site, he said.
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