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To: Glenn D. Rudolph who wrote (107291)8/19/2000 2:05:02 PM
From: H James Morris  Respond to of 164687
 
>Washington, Aug. 18 (Bloomberg) -- U.S. Internet shoppers spent $4.03 billion in July to buy office supplies, videos, summer fashions and sporting goods, according to a survey by the National Retail Federation and Forrester Research Inc.

Sales rose less than 1 percent from $4.01 billion in June, according to the poll of 5,000 consumers. The average amount spent by each Web consumer rose 1 percent to $290 in July from $288 a month earlier, the survey said.

Shoppers are expected to spend $38.8 billion on the Internet this year, almost double last year's $20.2 billion, according to Forrester Research. July's sales weren't expected to increase significantly from June because consumers do less shopping during summer months, the National Retail Federation said.

The online spending remains small percentage of overall traditional sales. Spending on general merchandise, clothing, furnishings, computers and other items totalled $56.1 billion in July, according to Michael Niemira, a Bank of Tokyo-Mitsubishi economist. He said the sales total, based on non-seasonally adjusted numbers from the Commerce Department, was down from the $57.2 billion spent in June.

``It's (Internet sales) still the tail and not the dog,'' Niemira said. The numbers cannot be directly compared because the survey number includes travel sales, while the Commerce Department numbers don't.

Office supplies sales rose to $149.5 million, a 35 percent increase, from the $110.9 million in June. Spending on videos rose by 17 percent to $94.3 million from $80.7 million.

Airline tickets remained the biggest category, generating $681.8 million, or 3 percent more, than the $664.3 million a month prior. Appliance sales surged 71 percent to $50.4 million from $29.5 million.

Niemira said Web sales have been increasing as more people connect to the Internet. He said cooler, wetter weather in some parts of the country in July could have prompted some people to some to shop online.

Online retailers don't issue monthly sales reports. The consumer poll has been conducted by Greenfield Online Inc. on behalf of Cambridge, Massachusetts-based Forrester and the National Retail Federation since January.

Aug/18/2000 14:06 ET