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Friday, October 26, 2007

Third Quarter U.S. Retail E-Commerce Grows 23 Percent versus Last Year


Online Sales of Toys Surge in the Face of Product Recalls

RESTON, VA, October 25, 2007comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, today released U.S. e-commerce spending figures for the third quarter of 2007, showing that retail e-commerce increased 23 percent versus year ago to $28.4 billion.

Third Quarter U.S. E-Commerce Spending

Excludes Auctions and Large Corporate Purchases

Q3 2007 vs. Q3 2006

Total U.S. – Home/Work/University Locations

Source: comScore


Q3 2006

(MM)

Q3 2007

(MM)

Percent Change

Total

$41,290

$48,596

18%

Non-Travel (Retail)

$23,050

$28,441

23%

Travel

$18,240

$20,155

11%

“Online retail spending continues to grow at rates in excess of 20 percent year-over-year, which suggests that the market is still far from maturity,” said comScore Chairman Gian Fulgoni. “Even online travel commerce, which is a more developed market, continues to experience double-digit gains.”

Total U.S. E-Commerce to Reach $200 Billion in 2007

During the first nine months of 2007, total e-commerce spending surpassed $143 billion, putting it on pace to reach $200 billion by the end of the year. Retail e-commerce accounted for nearly $84 billion, or 58 percent of the total, while online travel spending came in just shy of $60 billion.

Year-to-Date U.S. E-Commerce Spending

Excludes Auctions and Large Corporate Purchases

Q1-Q3 2007 vs. Q1-Q3 2006

Total U.S. – Home/Work/University Locations

Source: comScore


Q1 – Q3 2006

(MM)

Q1 – Q3 2007

(MM)

Percent Change

Total

$122,055

$143,326

17%

Non-Travel (Retail)

$69,120

$83,587

21%

Travel

$52,935

$59,739

13%

Video Games, Consoles & Accessories Continue Torrid Sales Online

Video games, consoles & accessories continues to be the hottest retail category, nearly tripling its online sales from last year on the strength of Nintendo Wii and Sony PlayStation 3-related sales. Consumer electronics was the second-fastest growing category in Q3 (up 58 percent), with high definition and flat screen TVs helping move the needle. It appears that recalls and reports of potentially harmful toy products manufactured in Asia may be accelerating sales of new toys online, since the toys & hobbies category ranked as the third fastest growing category (up 57 percent) during the quarter.

Top Gaining Online Retail Categories

Excludes Auctions and Large Corporate Purchases

Q3 2007 vs. Q3 2006

Total U.S. – Home/Work/University Locations

Source: comScore

Retail Category

Percent Change

(Q3 2007 vs. Q3 2006)

Video Games, Consoles & Accessories

199%

Consumer Electronics (excl. PC Peripherals)

58%

Toys & Hobbies

57%

Event Tickets

54%

Books & Magazines

48%

Furniture, Appliances & Equipment

47%

Home & Garden

31%

Music, Movies & Videos

31%

Jewelry & Watches

21%

Sport & Fitness

20%

Apparel & Accessories

11%

“Despite the negative publicity of toy recalls, the third quarter saw robust growth for online toy sales,” continued Mr. Fulgoni. “Given some of the uncertainty surrounding the holiday season, it’s possible that consumers were responding to fears of toy shortages and making their purchases early. In addition, it could be that consumers were replacing recalled toys with other new toys. We’ll be closely monitoring growth rates in the fourth quarter to see if these positive trends continue, or if what we’re seeing is simply a short-term reaction to the recalls.”

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